What does Exposure Rating mean? Read on to discover the definition & meaning of the term Exposure Rating - to help you better understand the language used in insurance policies.
A method of rating, usually applied to excess of loss reinsurance, under which the rate is determined based on an analysis of the exposure inherent in the business to be covered and not on the loss experience the business has demonstrated in the past. The reinsurance underwriter can use both exposure rating and loss rating to determine the quoted price.
We hope the you have a better understanding of the meaning of Exposure Rating.