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



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