What does Rate mean? Read on to discover the definition & meaning of the term Rate - to help you better understand the language used in insurance policies.
A unit of cost that is multiplied by an exposure base to determine an insurance premium. An insurance rate is the amount of money necessary to cover losses, cover expenses, and provide a profit to the insurer for a single unit of exposure. Rates, as contrasted with loss costs, include provision for the insurer's profit and expenses.
We hope the you have a better understanding of the meaning of Rate.