Loss Ratio Method

Definition of "Loss ratio method"

The Edelman Group<br>Sharon & Joshua Edelman
The Edelman Group
Sharon & Joshua Edelman
Keller Williams Realty

Modification of premium rates by a stipulated uniform percentage for closely related classes of property or liability insurance policies. The objective of such modification is to more directly align the combined actual loss ratio of the classes of policies under consideration with the expected loss ratio of these classes. The resultant alignment should show no significant standard deviation or variation of the actual loss ratio from the expected loss ratio.

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