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Judgment Rating
The underwriter determines the individual rate using their intuition and experience instead of a rating manual.
Manual Rating
The underwriter simply refers to rates as published int eh insurer's rating  manual which have been developed by actuaries based on the law of large numbers
Merit Rating
The underwriter start with manual rate, which is then modified based on past loss experience or other factors unique to the risk involved. Lower remiums are give to those clients who have fewer prior losses.
Retrospective Rating
deposits are made on the premium and then at the end of the period the final amount is determined.
Experience Rating
Often used to calculate premiums on large group life or health insurance polices. based on manual  and the insured own loss experience.
Loss Cost Rating
Often used by insureres who utilize rating plans developed by the ISO  who publishes rates based only on expected losses, leaving insurers free to add in their own factors relating to expenses and profit.
Components of filing rate
Cost of claims+admistrative-investment profits = filing rate
Physical Hazard
dead tree next to house, smoking in bed.
Moral Hazard
dishonest person
Morale Hazard
such as a careless person who has no pride of ownership in their property.
Contributory/Comparitive Negligence
if you contributed you can not collect. Under Comparative you can collect for if you are 50% or less.
Special Damages
medical expenses and wages lost
General Damages
pain and suffering, difigurement and loss of consortium
Punitive Damaged -
not covered by insurance. Gross Negligance
Parts of Policy
DICE - Declaration, Inuring agreement, Conditions, and Exclusions.
Short Rate and Pro-Rata cancellation
insured cancells = short rate

insurer cancels = pro-rata
Liberalization Clause
the insurer is permitted to change the terms of the ocntract at any time as long as teh change benifits the insured and no additonal premium is charge.
insurer may requre from the insurand an assignment of all right of recovery against an negligent third party for loss to the extent that payment  has been made by the ocmpany
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