noun. : an insurance rate based on the experience of a probable class of risks and published in a manual.
What are the three methods of insurance rating?
Manual Premium — premium calculated by applying an insured employer's payroll to the premium rates in an insurer's premium manual.
What is a manual premium?
Rating — determining the amount of premium to be paid to insure or reinsure a risk. Guaranteed cost rates are fixed during the policy period. Loss sensitive rates are those that can be adjusted after the end of a policy period, based upon the insured's actual loss experience.
What is meant by rating in insurance?
Rate making refers to the pricing of insurance and the calculation of insurance premiums. The premium paid by the insured is the result of multiplying a rate determined by actuaries by the number of exposure units, and then adjusting the premium by various rating factors (a process called rating).