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LSDefine

Simple English definitions for legal terms

experience rating

Read a random definition: economic-out clause

A quick definition of experience rating:

Experience rating: A way to figure out how much someone should pay for insurance by looking at how many times they've had to make a claim in the past and how much money was paid out for those claims. This helps insurance companies decide how likely it is that something bad will happen and how much it might cost them if it does.

A more thorough explanation:

Definition: Experience rating is a method used by insurance companies to determine the amount of premium an insured person or business should pay based on their past loss record. This method helps assess the risk of covered events occurring and the probable damages if they do.

Example: Let's say a small business has been insured for three years. During the first year, they had no claims, but in the second year, they had two claims totaling $10,000. In the third year, they had one claim for $5,000. The insurance company will use experience rating to analyze the business's loss record over the three years to determine the amount of premium they should pay for the fourth year. Based on the business's past loss record, the insurance company may increase the premium to cover the risk of future claims.

Explanation: The example illustrates how experience rating works in practice. The insurance company uses the business's past loss record to assess the risk of future claims and determine the amount of premium they should pay. In this case, the business had two claims in the second year, which increased their risk of future claims. As a result, the insurance company may increase the premium to cover the increased risk.

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JumpySubsequentDolphin
21:35
no he’s literally like 8 and he fully just put his head on my bicep and slept
JumpySubsequentDolphin
21:35
he has since moved
22:12
@SplitterusClitterus: me yesterday
gulc baby pls text me back... i miss you ...... :(
22:23
i just went into a discord vc and yelled "YALL I JUST GOT INTO J.M. SCHOOL OF LAW"
22:24
people were getting excited :sob:
22:25
then someone was like "what does jm stand for" and i was like .. well
AHHAHAHAHAHAHHAHAHAHAHAHAH
@JumpySubsequentDolphin: wait this is so cute, also where r u going
JOE MBIDEN
JumpySubsequentDolphin
22:39
@splitty Oregon!
oh yay for what thats so random
JumpySubsequentDolphin
22:45
haha my brother and sister in law live there
so cutie oregon is beatiful
soyalmondoatmilk
8:38
good morning! hoping waves will come our wave today
8:42
GW wave today?
8:57
There’s someone I found on here with the username threeoutchange and if my understanding is correct that’s a reference to the debut album by a pretty cool 90s-00s Japanese band called Supercar. I geeked a little
8:57
It could just be a baseball reference I don’t get though lol
Dkk
9:00
@renard99: also, the same band that does a song in the anime Eureka 7 which I watched when I was like idk, 12
9:00
Yeah! They are pretty good. Three Out Change is an awesome J-rock record
Dkk
9:01
I will probably not listen to them more but fun fact. Really random to start the day. An omen that the waves will be very random today.
Dkk
9:03
Fuck, reading the wikipedia now. Literal last song they did before they broke up was Storywriter. Wow.
9:05
That one is a masterpiece
9:05
My favorite song by them is Recreation
glovediedthisishismom
9:05
snowing
Dkk
9:07
@renard99: man, hard to find.
Dkk
9:07
@glovediedthisishismom: Congrats on the snow.
Dkk
9:16
@renard99: Poetic and nice.
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