Rated Policy

Rated Policy

An insurance policy with a higher than normal premium because of a particularly dangerous aspect of the policyholder's life. For example, if a policyholder is known to go skydiving every week, his life insurance may be a rated policy.
References in periodicals archive ?
Solutions include using a captive; raising a deductible to make the premium more affordable; or finding coverage with a retrospectively rated policy, which after the policy is over, refunds some of the premium to insureds if their loss history proves to be good.