what is the diference between insurance composite rating and loss cost rating?
Answers: Hm. They aren't comparable, the way I'm thinking of it.
Composite rating is adjectives for large auto fleets beside high turnover. Each class code (or sometimes several classes are bunched together) is given a rate. So a massive truck would be, $1000 per year. Period. Every time a large truck is added or delete, the AGENT would type up the endorsement, pro-rate the premium, and dispatch a copy to the company, and a copy to the insured, as the rate for each vehicle within that class is pre-determined.
Sometimes, instead of changing premiums as you walk along, the policy is charged based on the exact exposures at a particular date - once a month, once a quarter, or once a year - resulting in an "audit" of the composite rate auto policy, after it expires.
I've only see loss cost rating applied to workers comp. That's when the state workers comp rating board promulgates "loss costs" for each class code, consequently each company can apply modifiers to the loss costs, to grasp their particular rates.
So because you can't really compare the two, you can't really differentiate between the two. Which is why I've explained the two.
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Answers: Hm. They aren't comparable, the way I'm thinking of it.
Composite rating is adjectives for large auto fleets beside high turnover. Each class code (or sometimes several classes are bunched together) is given a rate. So a massive truck would be, $1000 per year. Period. Every time a large truck is added or delete, the AGENT would type up the endorsement, pro-rate the premium, and dispatch a copy to the company, and a copy to the insured, as the rate for each vehicle within that class is pre-determined.
Sometimes, instead of changing premiums as you walk along, the policy is charged based on the exact exposures at a particular date - once a month, once a quarter, or once a year - resulting in an "audit" of the composite rate auto policy, after it expires.
I've only see loss cost rating applied to workers comp. That's when the state workers comp rating board promulgates "loss costs" for each class code, consequently each company can apply modifiers to the loss costs, to grasp their particular rates.
So because you can't really compare the two, you can't really differentiate between the two. Which is why I've explained the two.
Resolved Questions: