Experience rating

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Experience rating (alternatively known as merit rating) is a rate assigned by an insurance company to determine the cost of insurance coverage. This rate is based on the physical difficulty of jobs within various industries and the history/cost of prior employee accident claims submitted.


Definitions

According to College Accounting: A Practical Approach by Slater (13th edition)‎,

Experience rating (merit rating). A rate assigned by an insurance company to determine the cost of insurance coverage. This rate is based on the physical difficulty of jobs within various industries and the history/cost of prior employee accident claims submitted.

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