Terms associated with modifiers
The following table lists some terms associated with modifiers.
Term |
Description |
|---|---|
Modifier |
The most general term used to encompass the superset of premium-bearing factors including, but not limited to, the following:
Modifiers appear on the policy (unlike, for example, commissions). |
Experience Modifier (exp mod) |
An experience factor that indicates whether the insured has a less or more favorable loss history than peers in its industry. Various rating bureaus publish Workers’ Compensation experience modifiers. In other lines, each insurer calculates experience modifiers as part of the rating process. |
Schedule Rate |
A specific type of modifier that provides credits or debits within established value ranges. Use them for factors such as management, property, and other intangibles that you cannot quantify as part of the submission. |
IRPM |
Individual Risk Premium Modification is a specific example of a schedule rate modifier. Used primarily in property and liability polices, the rating and quoting engine takes the following factors, among others, into account in determining the premium:
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