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rate

Rate is a unit of cost that is multiplied by an exposure base to determine an insurance premium.

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rate

Rate is a unit of cost that is multiplied by an exposure base to determine an insurance premium.

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An insurance rate is the amount of money necessary to cover losses, cover expenses, and provide a profit to the insurer for a single unit of exposure. Rates, as contrasted with loss costs, include provision for the insurer's profit and expenses.