Rate Making

Rate Making

In insurance, the process of determining premiums for large groups of policyholders. In rate making, the insurer must make certain that the premium is practical (that is, it covers actual risk of loss), fair to the policyholders, and non-discriminatory. Rate making is done for groups of policyholders because it is not cost effective to individually determine premiums for every policyholder.
References in periodicals archive ?
The two day Pricing and Rate Making in Plain English seminar teaches the pricing skills and rate making concepts that let individuals do their own pricing, or support and understand their company's actuaries.
premium rate making decisions for private passenger automobile policies in Massachusetts;
Sorenson Communications Advocates Price Cap Approach to Rate Making
Given the transportation facilities projects' essentiality and competitiveness, they provide the authority with a high level of economic rate making ability.
Despite the small growth in traffic for fiscal 2005, revenues increased 28%, demonstrating a growing degree of rate making flexibility.
Additionally, the impairment will not impact the rate making process.
With the impairment charge, there is a potential risk that the MPSC will factor in the adjusted capital structure in its rate making decisions.
Since the rate making process assumes normal weather, we do not believe a full rate proceeding is needed to approve this 'revenue-neutral' mechanism.
This is a credit strength that provides the LTA with tremendous economic rate making flexibility that is unusual for such a brownfield project.
Currently, between $70 billion and $90 billion is wagered at land based bingo halls each year around the world, and the current Internet bingo market is estimated to be more than $800 million with a 400% annual growth rate making it one of the fastest growing online products.
Topics to be covered include: M&A, the impact of rising energy costs in the rate making arena, ballooning environmental capital expenditures, challenges in expanding coal & nuclear capacity, the future of RTOs and energy/environmental legislation, and where to deploy rising free cash flow.
Most of Aquila's jurisdictions, including its largest, Missouri, use historical test years for rate making purposes, which creates recovery lags.