Rating Bureau
Definition of "Rating bureau"
Cooperative organization among insurers that rates and prepares new policy forms according to guidelines and regulations of the state insurance department. Loss experience, collected according to the line of business in specific geographical areas, is used to suggest rates for use by the rating bureau member companies. They may either use these rates or file their own deviated rates for approval by the state insurance department if it is a prior approval state. In an open competition state, a company does not need approval for a deviated rate. In a file-and-use state, a company can use a deviated rate without approval, after having filed it with the state insurance department. In a modified prior approval state, a company can use a deviated rate after filing it with the state insurance department provided it is a modest deviation and not a new rate classification.
Popular Insurance Terms
Section of the Internal Revenue Code that provides for the taking of the proceeds from one life insurance policy or annuity and the reinvesting of these proceeds immediately in another life ...
Property to be insured, or that is insured, which is located within the specific geographical region falling under the auspices of the fire department. ...
Interest rate credited on three-month United States Treasury bills. ...
Common element in property insurance that excludes electrical damage or destruction of an appliance unless the damage is caused by a resultant fire. ...
Life insurance policy option under which the dividends that have accrued may be applied to mature the policy as endowment insurance. ...
Same as term: engineering approach; human approach ...
Variable-rate bonds whose coupon and value increases as interest rates decrease. ...
worth of each accumulation unit at the end of each valuation period for a variable annuity. This value is similar to that of the net asset value for a mutual fund. ...
First historical mortality table used for the calculation of premium rates for group annuities. This table was subsequently replaced by the group annuity table, 1971. ...
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