Modified Prior Approval Rating
Definition of "Modified prior approval rating"
Form of state rating law that requires prior approval of property and casualty insurance premiums by the state insurance department for certain changes. Here, a state generally allows new rates to go into effect immediately after filing with the insurance department. However, changes in classification of risks or other substantial changes require prior insurance department approval. There are four methods of rate approval. In addition to modified prior approval, they are PRIOR APPROVAL RATING, open competition, and file and use.
Popular Insurance Terms
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Authority derived from an agent's contract with an insurance company. ...
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Payment of premiums before their due date. In pension plans, premium payments are allocated to the payment of future benefits prior to benefits becoming payable. ...
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