What does Secondary Classification mean? Read on to discover the definition & meaning of the term Secondary Classification - to help you better understand the language used in insurance policies.
In commercial auto insurance rating, the classification based on the specific industry for which the vehicle is being used. The secondary classification is a tool for gathering statistical data for assessment of factors other than the primary classification factors of size of vehicle, radius of operations, and business use.
More Insurance Terms And Definitions
The Merriam-Webster Dictionary defines insurance as:
b: Coverage by contract whereby one party undertakes to indemnify or guarantee another against loss by a specified contingency or peril.
c: The sum for which something is insured.
We hope the you have a better understanding of the meaning of Secondary Classification. If you are looking for the meanings of other important insurance terms and their definitions, just click on the letter below to find the words & concepts you are looking for: