experience rating


Also found in: Financial.

experience rating

An insurance rating method which predicts a group's future medical costs based on its past experience (i.e., the actual cost of providing healthcare coverage to the group during a given period of time based on the group's claim history). With experience rating, the insurer calculates the group's insurance premium based on its own—not the overall community's—experience.

experience rating

1. A projection of the cost of an insurance policy (e.g., of a malpractice insurance policy) based on the claims history of the person or party seeking to be insured.
2. A calculation of future insurance payments based on historical data.
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For a detailed analysis of changes in parameter values under the two methods of experience rating see Cook, 1992.
These partial derivatives imply that decreasing the degree of experience rating of the sickness benefit tax would, on a given day, increase the number of workers employed and decrease the number of employees working, and hence, increase the number of workers who are absent.
Further, incomplete experience rating causes certain firms and industries to receive many more dollars in unemployment benefits than they pay in taxes.
A: The bill would prohibit municipal pool self-insurance, and experience rating eliminating any advantage for municipal pooling.
The market mechanism of experience rating is one aspect of UI that makes it so intriguing to economists.
Individual experience rating is a method of crediting or surcharging normal premiums based on the losses of an individual company.
Regarding IIAT's request, the insurance department's order stated: "The petition asks TDI to amend Rule 4-C-4 of the National Council on Compensation Insurance (NCCI) Experience Rating Plan Manual for Workers Compensation and Employers Liability Insurance (NCCI Experience Rating Plan Manual).
Most experience rating programs compare employers that are in the same industry classification.
Waban, MA, June 28, 2011 --(PR.com)-- A new research report published by Temkin Group, 2011 Temkin Web Experience Ratings, examines the online experiences delivered by 119 large US companies.
An optimist might price this as if that anomaly were the norm, but prudence calls for including an expected number of incurred waiver claims in the experience rating,
We show that experience rating improves this sophisticated pricing method as much as it originally improved pricing compared with a trivial flat rate.
He analyzes the effects of 'experience rating,' discusses the implications of severance payments and judicial mistakes, and describes the effects of employment protection on the incentive for ex-ante skill formation.

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