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Experience Rating |
Also found in: Medical | 0.02 sec. |
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Experience rating Experience Rating In insurance, a calculation of a policy's premium based on the likelihood of a claim on that policy. This calculation takes into account the policyholder's history of past claims with the aim of discouraging dangerous activities that would lead to a claim. For instance, a policyholder with a history of claims due to work-related injuries will likely pay higher premiums because of his/her experience rating than a policyholder with no such history. Indeed, an experience rating showing few or no claims can lead to discounts on premiums. Want to thank TFD for its existence? Tell a friend about us, add a link to this page, add the site to iGoogle, or visit the webmaster's page for free fun content. |
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