Experience rating is an underwriting method used by insurance companies to determine the correct premium price for a policy by analyzing past loss experience within the insured group to project future claims.
An experience refund is the return of a percentage of the premium paid by a business firm if its loss record is better than the amount loaded into the basic premium.
Level Premium is a type of insurance premium that remains constant throughout the duration of the policy, regardless of changes in the nature of the risk or the insured's life circumstances.
Mortgage Insurance Premium (MIP) is the fee paid by a mortgagor to obtain mortgage insurance on a mortgage loan. This fee can be collected as a lump sum at loan closing, as part of the monthly payment, or both.
Risk financing transfer involves paying an insurance premium to an insurance firm to cover certain risk hazards, thereby transferring the financial consequences of those risks.
