Schedule Rating
Definition of "Schedule rating"
Method of pricing property and liability insurance. It uses charges and credits to modify a class rate based on the special characteristics of the risk. Insurers have been able to develop a schedule of rates because experience has shown a direct relationship between certain physical characteristics and the possibility of loss. For example, for fire insurance, the underwriter might make an additional charge above the standard rate for the class if a building contains a flammable liquid. A credit may be given if it has a sprinkler system. In automobile insurance, a credit might be given for driver education. In life insurance, credit is usually given for a nonsmoker. Schedule rating is commonly used for fire, automobile and workers compensation insurance.
Popular Insurance Terms
Determination of (1) a future property or liability insurance or reinsurance rate or (2) a premium for a specified future period of time. It is based on the loss experience of a specified ...
Coverage for dispensers of alcoholic beverages against suits arising out of bodily injury and/or property damage caused by its customers to a third party. Establishments covered include ...
Trade association whose objective is to further the interests of its membership, as well as to inform the public on the role of its members. ...
Plan that permits the insurance company to administer health care plans that permit the patient to choose from three benefit options at the time of need: indemnity (insurance), HEALTH ...
Bond that provides additional security for a loan. ...
Coverage for a group of individuals under one policy. Usually, members belong to a particular company, union, or trade association. In a contributory plan a lump sum premium is paid by the ...
Same as term Excess of Loss reinsurance: method whereby an insurer pays the amount of each claim for each risk up to a limit determined in advance and the reinsurer pays the amount of the ...
Sections with standard wording common to all property and casualty insurance contracts: conditions, declarations, exclusions, insuring agreement. ...
Geographical area in which commerce can be conducted without tariffs being applied. The concept was adopted in insurance through the use of a reinsurance facility for buying and selling of ...
Have a question or comment?
We're here to help.