Risk Class
Definition
- A grouping of individuals who present similar levels of risk to an insurer. Individuals are sorted into risk classes depending on one's gender, if one smokes or not, and if their risk profile classifies them as preferred, standard or substandard.
Synonyms
insurance risk class
Related Terms and Acronyms
- Actuarial Table — Definition,
- A table used in actuarial science that outlines the statistical probability that an individual of a specific age and sex will die within a year.
- High Risk Auto Insurance — Definition,
- Auto insurance for drivers with an increased risk of collisions.
- Insurance Score — Definition,
- A score used by those in the insurance industry to determine how likely a claim will need to be paid out for an individual or entity.
- Mortality and Expense Risk Charge — Definition,
- A charge sometimes applied to reimburse an insurer for the risks in a policy.
- Preferred Auto — Definition,
- Auto insurance for those with better driving records.
- Private-Passenger Auto Insurance Policyholder Risk Profile — Definition,
- A system for sorting drivers by their driving records and how likely they are to cause a loss for an insurance company.
- Substandard Insurance — Definition,
- Insurance for those who are ineligible for standard insurance due to higher risk profiles.
- Underlying Mortality Assumption — Definition,
- A measurement of death rates that is used to estimate pension obligations and insurance premiums.
