Why Not Rate Health and Life Insurance Premiums by Risks?
- 17 February 1983
- journal article
- Published by Massachusetts Medical Society in New England Journal of Medicine
- Vol. 308 (7) , 393-395
- https://doi.org/10.1056/nejm198302173080711
Abstract
The purpose of insurance is to spread the risk of costly, unpredictable events. Insurance carriers establish premiums on the basis of community experience, individual experience, or individual risk. Community rating simply estimates the anticipated claims of the community and divides that estimated cost by the number of insured. Experience rating adjusts such community-rated premiums according to previous claims paid to the insured. For instance, drivers found at fault in motor-vehicle accidents frequently find these accidents reflected in their subsequent automobile-liability insurance premiums. Risk rating adjusts the premium according to the likelihood that the insured individual will sustain the event. For . . .Keywords
This publication has 5 references indexed in Scilit:
- Multiple risk factor intervention trial. Risk factor changes and mortality results. Multiple Risk Factor Intervention Trial Research GroupJAMA, 1982
- EFFECT OF DIET AND SMOKING INTERVENTION ON THE INCIDENCE OF CORONARY HEART DISEASEThe Lancet, 1981
- The multiple risk factor intervention trial after 4 years: A summing-upPreventive Medicine, 1981
- Five-year findings of the hypertension detection and follow-up program. I. Reduction in mortality of persons with high blood pressure, including mild hypertension. Hypertension Detection and Follow-up Program Cooperative GroupPublished by American Medical Association (AMA) ,1979
- Effects of treatment on morbidity in hypertension. II. Results in patients with diastolic blood pressure averaging 90 through 114 mm HgPublished by American Medical Association (AMA) ,1970