Experience rating


Also found in: Medical.

Experience rating

A technique insurance companies use to determine the correct price of a policy premium.

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.
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Temkin then averaged these scores for each company's Temkin Experience Rating.
The theory underlying experience rating holds that multiple claims are more indicative of future probable losses than a single large loss and that's what experience rating is all about.
The majority of the Provincial Workers' Compensation boards have an experience rating program in place.
There are many aspects to consider: how to calculate premium; how experience rating and modifiers work; and various financial plans and considerations.
In this paper, Federal Reserve Board economist David Ratner utilizes the variance in experience rating across states to calculate the effect of increased experience-rating.
Across all subjects, the highest experience rating was for the activity of listening to music.
0 or below experience rating to bid jobs, I'm constantly focused on learning how to better prepare them for the changes.
government unemployment insurance program already uses an experience rating approach, Manchester said.
The computer industry received the fourth lowest-average customer experience rating, falling only ahead of health plans, Internet service providers, and TV service providers.
To examine the equity of this system, we met with officials from five states, reviewed prior studies, and examined state data to determine (1) how states ensure that employers pay UI taxes based on their experience with unemployment, and the aspects of state unemployment insurance systems that limit experience rating; (2) the extent to which employers pay unemployment insurance taxes commensurate with unemployment benefits paid to their former employees; and how this varies by industry; and (3) steps states could take to increase the degree of experience rating.
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