Experience rating

From CNM Wiki
Revision as of 05:14, 20 December 2018 by Gary (talk | contribs)
Jump to: navigation, search

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.

Related concepts

Related coursework