Modification Rating
Definition of "Modification rating"
(also known as merit rating) method of setting property insurance rates by modifying or adjusting the manual rate for various classifications of risks. Modifications may be based on past or anticipated loss experience. The three types of modification rating are experience rating, retrospective rating, and schedule rating.
Popular Insurance Terms
Projected percentage of the earned premiums that will be required by the insurance company to pay for the incurred losses plus the loss adjustment expense. ...
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Stipulations of the rights and obligations of an insured and an insurer under a policy. ...
Clause in a property insurance policy that requires the insurance coverage in that policy to be allocated in the proportion that it bears to the total insurance coverage in force from all ...
Insurance company's total premium income plus investment income. ...
Analytical procedure to predict the failure rate of a system still in the design stage. ...
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Individual action or failure to act as a reasonably prudent person would under similar circumstances, resulting in harm to another. Also called negligence. A reasonably prudent person is ...
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