experience rating


Also found in: Financial.

experience rating

[ikspir′ē·əns]
Etymology: L, experientia, testing, rata, proportion
a system used by insurance companies in the United States to set the premium to be paid by the insured on the basis of the risk to the company of providing the insurance. Experience rating may lead to very high malpractice premiums in some medical specialties, for the insurance company calculates the premium on the basis of settlements made in related malpractice cases during a specified period. Experience rating is also used to set annual membership health maintenance fees in organizations in which the cost of providing the services in a previous accounting period is used to determine the premiums for the next fiscal year.

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.

experience rating,

n a determination of the premium rate for a particular group partially or wholly on the basis of that group's own experience. Age, sex, use, and costs of services provided determine the premium.
Mentioned in ?
References in periodicals archive ?
Supermarkets had the top customer experience rating among industries in 2017 at 78%, with other retailers coming in at No.
All experience rating plans reduce the impact of large losses and increase the impact of small, frequent claims.
Most experience rating programs compare employers that are in the same industry classification.
Human resource professionals, who often are charged with managing a program that a financial officer negotiated, need to be well versed on premium, experience rating, financial plans and cost management.
Ratner demonstrates that if those funds are repaid through an increase in experience rating, unemployment will decrease because of better incentives.
A multifactorial ANOVA (Sex x Age x Place of Birth) on the summed ratings across ah 40 "depth of experience" variables yielded no significant interactions, but did yield a main effect of Place of Birth, with foreign-born students giving significantly higher depth of experience ratings (M = 199.
One criticism of experience rating is that it could discourage employers from hiring people with disabilities, potentially increasing growth in the number of beneficiaries in the [SSDI] program," Manchester reported.
22, 2012 /PRNewswire/ -- A new research report published by Temkin Group, 2012 Temkin Experience Ratings, rates the customer experience of 206 large companies across 18 industries.
Similarly, a minimum tax rate ensures that an employer's tax rate will not drop below a specified floor, no matter how much its experience rating improves.
To understand this concept, it's necessary to have a working understanding of how the experience rating plan works, because it produces an experience mod that is applied to almost all workers' comp policies.
According to G3T marketing director Lee Squire the phone's 100 per cent "out of box" experience rating by University Of Central England User-lab, fulfils the developers business objective of creating a phone that provides "everything a customer needs to make high-quality, inexpensive phone calls, in one simple, easy-to-use device.

Full browser ?