Rating Bureau
Definition of "Rating bureau"
Cooperative organization among insurers that rates and prepares new policy forms according to guidelines and regulations of the state insurance department. Loss experience, collected according to the line of business in specific geographical areas, is used to suggest rates for use by the rating bureau member companies. They may either use these rates or file their own deviated rates for approval by the state insurance department if it is a prior approval state. In an open competition state, a company does not need approval for a deviated rate. In a file-and-use state, a company can use a deviated rate without approval, after having filed it with the state insurance department. In a modified prior approval state, a company can use a deviated rate after filing it with the state insurance department provided it is a modest deviation and not a new rate classification.
Popular Insurance Terms
Premium payment. ...
Total amount of insurance that an insurer will write on any specific city block. Such a limit will reduce the insurer's exposure to a potential catastrophic occurrence, such as a hurricane, ...
Coverage usually provided as part of the storekeepers burglary and robbery insurance in the event merchandise, fixtures, equipment, and furniture are lost due to theft and burglary. ...
Damaged insured property in receipt by the insurance company resulting from abandonment and salvage, subrogation, and reinsurance. ...
Same as term Direct Response Marketing: method of selling insurance directly to insureds through a companies own employees, through the mail, or at airport booths. The company uses this ...
The term elevator collision insurance or elevator liability insurance is included in business liability insurance policies in order to cover potential damages suffered by the elevator or ...
Coverage for the owner of an airplane in circumstances where use of the owner's premises as an aircraft hangar results in bodily injury or property damage to a third party. Excluded from ...
Return of a percentage of premium paid by a business firm if its loss record is better than the amount loaded into the basic premium. ...
Mortality table that reflects irregularities from age to age due to chance fluctuations in the sequence of the rates of mortality. The rates of death as reflected by the mortality table in ...
Have a question or comment?
We're here to help.