What does Rate Class mean? Read on to discover the definition & meaning of the term Rate Class - to help you better understand the language used in insurance policies.
A rate class is a grouping of individuals that insurers use as a basis for their premium pricing. Depending on the type of risk insured, the rate class can take into account factors such as health status, driving history, or income levels. The insurance company's underwriters are tasked with assigning applicants to rate classes.
We hope the you have a better understanding of the meaning of Rate Class.