What is PROSPECTIVE RATING?

A method of calculating the premiums or rates for a time in the future. This process takes into account any posses that have occured in the previous years that are used to calculate for future years.

More On This Topic
  1. Marijuana: Recreational, Grow, & Medical Laws By State 2020
  2. Four Reason Why a Landlord Can (and Can’t) Reject a Rental Application
  3. 401(K) Types, Loans, Contribution Limits, & Benefits
  4. Nepotism, Cronyism, & Favoritism: Illegal Or Unethical?
  5. Will Progressive Auto Insurance Raise Your Rates for No Reason?
  6. How To Obtain A Criminal Background Check In Pennsylvania
  7. How to Calculate a Settlement in a Workman’s Comp Injury
  8. How Badly Will Late Mortgage Payments Affect My Credit Score?
  9. How Long Does It Take for Car Insurance to Lower Rates?
  10. Is It Illegal for a Prospective Employer to Verify Your Current Salary?

Related Legal Terms
PROSPECTIVE RATING PLAN, PROSPECTIVE RESERVE, EXPERIENCE RATING, PROSPECTIVE EARNINGS, PROSPECTIVE FINITE POLICY, PROSPECTIVE, PROSPECTIVE REIMBURSEMENT, RATING PROCESS, OPEN RATING, RETROSPECTIVE RATING


Link to This Definition
Did you find this definition of PROSPECTIVE RATING helpful? You can share it by copying the code below and adding it to your blog or web page.
Written and fact checked by The Law Dictionary