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 ?
"If this continues, Ireland's regions will stagnate or decline while Dublin will grow at an unsustainable rate making it less attractive for foreign direct investment."
Roger Walleck, vice president of Underwriting at Missouri Employers Mutual, has been elected to serve on the national underwriting committee for the workers' compensation rate making organization, National Council on Compensation Insurance (NCCI).
The Commission did not accept, for rate making purposes in Montana, an accelerated 2027 depreciation schedule for Colstrip, as otherwise agreed to by the parties in Washington.
After the initial review has been conducted, the consultant shall present to the City and Township for approval a plan for the rate study based upon the actual cost of service as determined under the utility basis of rate making, to determine whether or not rate adjustments are indicated.
Two types of subscription-based carrier member organizations have managed the classification, rate making, and publishing process for decades.
Technology has enabled simple rate making processes in air and TL to be replaced with dynamic complex rate contracting processes for more than a decade.
Updated here from the 2000 edition, it covers an overview of cost-based water utility rate making, revenue requirements, cost allocation, rate design, other rate issues, capacity and development charges, and implementation issues.
Efficient state supervision and regulation of insurance rates should do away with state rate making and ether forms of obnoxious state control.
The objective was to build a model that is refined enough for use in underwriting and rate making as well as accumulation management, he said.
Senate, has politicized the rate making process on numerous occasions," Musick said.