Term
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Definition
| A document ddrafted by the NAIC, in a style sililar to a state statute, that reflects the NAIC's proposed solution to a given problem or issue and provides a common basis to the states for drafting laws that affect the insurance industry |
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Term
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Definition
| The amount per exposure unit for insurance coverage, used to arrive at premium when multiplied by the number of exposure units. |
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Term
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Definition
| A person who uses complex mathematical methods and technology to anlyze loss data and other statistics and to develop systems for determining insurane rates. |
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Term
| Objective of rate regulation |
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Definition
| to ensure that 1. rates are adequate, 2. rates are not excessive, 3. not fairly discriminatory |
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Term
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Definition
| A rate making concept through which actuaries base rates on calculated loss experience to place insureds with similar characteristics in the same rating class |
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Term
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Definition
| A rating concept that holds that rate structures discriminate unfairly if they impse a higher rate on an insured for factors beyond the insured's control, such as age and gender. |
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