Rating, underwriting and commercial insurance terminology. The concepts behind commercial pricing, bureau content, carrier rates and the adjustments underwriters apply, explained in plain terms.
A technology interface that allows insurance platforms to exchange information with policy administration systems, agency management systems, third-party data providers, payment platforms, and other applications.
The types of businesses, industries, or risks an insurance carrier is willing to insure.
A complete history of every rating calculation, underwriting decision, approval, and policy change recorded by the rating platform.
The initial rate used before additional rating factors, modifiers, credits, and debits are applied.
The process of placing insurance coverage into effect after a quote has been accepted.
A licensed insurance professional who represents the insured when placing coverage with one or more insurance carriers.
An insurance company that assumes the financial risk and issues insurance policies.
The process used by an insurance carrier to calculate premiums using its own rating plans and underwriting guidelines.
A standardized classification used to identify the type of business or operation being insured.
The sequence of business processes that move a submission from intake through rating, underwriting, quoting, binding, and policy issuance.
A regulatory process allowing an insurer, where permitted, to charge a premium different from filed rates after satisfying applicable legal requirements.
The portion of a covered loss paid by the insured before insurance coverage applies.
The date on which insurance coverage begins.
The process of selecting the correct rating plan based on the policy's effective date.
Carrier-defined rules that determine whether a business qualifies for coverage.
A numerical factor that adjusts premium based on a company's historical claims performance.
The methodology used to adjust insurance premiums based on historical loss experience.
Insurance rates that have been submitted to and, where required, approved by state insurance regulators.
Commercial insurance coverage protecting businesses against claims involving bodily injury, property damage, and personal or advertising injury.
A carrier-specific underwriting adjustment that applies credits or debits based on the unique characteristics of an individual risk.
An organization that develops insurance advisory information, including loss costs, statistical data, and standardized classifications used by many commercial insurers.
A pricing methodology in which underwriters determine premium using professional judgment when standard rating plans do not adequately reflect a risk.
An estimate of expected future claims developed using historical loss data.
A carrier-specific factor used to convert published loss costs into carrier base rates.
Loss cost represents expected claims, while premium is the final price charged after all rating factors and underwriting adjustments have been applied.
An organization authorized by one or more insurance carriers to perform underwriting, binding, and other delegated insurance functions.
The lowest premium an insurance carrier will charge for a policy regardless of calculated premium.
The ability to calculate premiums for multiple insurance carriers using a single rating platform.
The core insurance platform used to manage policy issuance, endorsements, renewals, billing, and policy servicing.
The amount paid by the insured for insurance coverage after all rating calculations have been completed.
The complete workflow that moves a commercial insurance submission from quote generation through policy binding and issuance.
Software that automates premium calculations using configurable carrier-specific rating rules and underwriting logic.
A detailed record showing every calculation used to produce a commercial insurance premium.
A referral message indicating that a submission requires manual underwriting review before a quote or binding decision can be completed.
Carrier-defined business rules that route submissions requiring manual underwriting review.
Carrier-approved credits or debits applied for characteristics not fully reflected by standard rating variables.
The application and supporting information submitted for underwriting and premium calculation.
A pricing adjustment reflecting geographic differences in insurance risk.
An insurance professional responsible for evaluating risk and making coverage and pricing decisions.
The process of evaluating insurance risk, determining eligibility, applying carrier guidelines, and approving or declining coverage.
A centralized workspace where underwriters review submissions, referrals, documentation, approvals, and rating information.
The process of maintaining historical and future versions of rating plans, underwriting rules, and insurance products based on effective dates.
The sequence of automated and manual business processes used to move a commercial insurance submission from intake through policy issuance.