Actuarial Equity

Dictionary Says

Definition of 'Actuarial Equity'

The calculation of an insurance premium based on crucial factors such as the applicant's age, gender, health, family history and the type of insurance coverage applied for. This allows insurers to treat applicants fairly according to their estimated risk levels.
Investopedia Says

Investopedia explains 'Actuarial Equity'

In automobile insurance, insurers use age as a rating factor in determining individual premiums. Thus, because young people tend to have less favorable driving records as a group, these individuals are required to pay out more in premiums, which normally include the expected value of losses.

Sign Up For Term of the Day!

Try Our Stock Simulator!

Test your trading skills!

Related Definitions

  1. Actuarial Analysis

    The examination ...
  2. Life Insurance

    A protection ...
  3. Actuarial Risk

    The risk that ...
  4. Actuarial Cost Method

    A method used by ...
  5. Funded Status

    The status of ...
  6. National Average Wage Index - NAWI

    An index ...
  7. 403(b) Plan

    A retirement ...
  8. Financial Intermediary

    An entity that ...
  9. Agent

    1. An individual ...
  10. Guaranteed Investment Contract - GIC

    Insurance ...

Articles Of Interest

  1. Insure Your Future With A Career As An Actuary

    If you've got excellent math skills, they can add up to a lucrative career as an actuary.
  2. Traditional MBA Or Business Graduate Degree?

    Though an MBA is the most popular business graduate degree, there may be other options more suited to your goals.
  3. 15 Insurance Policies You Don't Need

    Learn how to save money by saying "no" to unnecessary coverage.
  4. 9 Penalty-Free IRA Withdrawals

    If you need to take early distributions, find out which exemptions allow you to avoid expensive consequences.
  5. The Alphabet Soup Of Financial Certifications

    We decode the meaning of the many letters that can follow the names of financial professionals.
  6. Top Tips For Cheaper, Better Car Insurance

    Accident, theft, vandalism - make sure your coverage will protect you when you need it most.
  7. Market Capitalization Defined

    Find out the differences between mega-, large-, mid- and small-cap stocks and how each suits different investing styles.
  8. In Small Business, Success Is Spelled With 5 "C"s

    Incorporating these steps will help your business thrive in a competitive market.
  9. Retirement Savings Tips For 35- To 44-Year-Olds

    Learn how the "sandwich generation" can save for retirement while taking care of their kids and parents.
  10. Is Loan Protection Insurance Right For You?

    This coverage can keep you from defaulting on your loans when you're in financial trouble.

comments powered by Disqus
Recommended
Loading, please wait...
Trading Center