What does Risk Appraisal mean? Read on to discover the definition & meaning of the term Risk Appraisal - to help you better understand the language used in insurance policies.
Risk appraisal is the process of assessing the likelihood of a policyholder filing a claim. Risk appraisal is used to determine premium prices for individuals applying for coverage. After the applicant's risk is appraised, they are placed into a certain risk class by the insurer and are offered insurance options that are priced accordingly.
We hope the you have a better understanding of the meaning of Risk Appraisal.