What does Rating Experience mean? Read on to discover the definition & meaning of the term Rating Experience - to help you better understand the language used in insurance policies.
Computing a premium based on the loss experience of the risk itself. Essentially a comparison of actual losses with expected losses. If actual losses are lower than expected, a premium credit to the manual rate or prior-year premium results. If actual losses are greater than expected, a premium surcharge results.
We hope the you have a better understanding of the meaning of Rating Experience.