Definition of "Schedule rating"

Duane Hayden- Tampa

Written by

Duane Hayden- Tampa's Home Teamelite badge icon

RE/MAX Capital Realty

Method of pricing property and liability insurance. It uses charges and credits to modify a class rate based on the special characteristics of the risk. Insurers have been able to develop a schedule of rates because experience has shown a direct relationship between certain physical characteristics and the possibility of loss. For example, for fire insurance, the underwriter might make an additional charge above the standard rate for the class if a building contains a flammable liquid. A credit may be given if it has a sprinkler system. In automobile insurance, a credit might be given for driver education. In life insurance, credit is usually given for a nonsmoker. Schedule rating is commonly used for fire, automobile and workers compensation insurance.

image of a real estate dictionary page

Have a question or comment?

We're here to help.

*** Your email address will remain confidential.
 

 

Popular Insurance Terms

Billing by an administering agency for expenses associated with administering a group employee benefit plan. ...

Organization that develops and publishes educational material and administers national examinations in supervisory management, general insurance, claims, management, risk management, ...

Part of a marine cargo policy that exempts the policyholder from vouching for the seaworthiness of the vessel. For example, while a purchaser of hull marine insurance warrants that a ship ...

Coverage for goods in transit and the vehicles of transportation on waterways, land, and air. ...

Section of a life insurance policy setting the procedure for revoking a current beneficiary and designating a successor beneficiary. Insurers require written notice of a beneficiary change, ...

Feature of life and health insurance policies that stipulates that the policy represents the whole agreement between the insurance company and the insured, and that there are no other ...

Same as term Participating Policy Dividend: life insurance contract that pays its owner dividends, which can be: taken as cash; applied to reduce a premium; applied to purchase an ...

Legislation that redefined life insurance and raised taxes on life insurance companies. Among the provisions were new rules for some life insurance products, including a definition of ...

Insured peril in some property insurance policies that encompasses any accidental damage to insured property while being removed to safety from the immediate threat of damage by another ...

Popular Insurance Questions