Bureau Rate

AAA

DEFINITION of 'Bureau Rate'

A standard price per unit of insurance set by a state's insurance rating bureau, the association of all the insurance companies authorized to write particular kinds of insurance in that state. The different insurance companies in the state combine their data on claims and losses to improve the statistical soundness of insurance rates.

INVESTOPEDIA EXPLAINS 'Bureau Rate'

An insurance company may choose to charge a lower rate than the bureau rate. An example of how it might choose to charge a lower rate would be a persistency discount, or a discount given to a customer for keeping a policy in force with the same insurer for a particular number of years. Insurers also have the option to file for deviated rates, which must be first approved by their state's insurance department.

RELATED TERMS
  1. Insurance

    A contract (policy) in which an individual or entity receives ...
  2. Insurance Score

    A rating computed and used by insurance companies that represents ...
  3. Insurance Underwriter

    A financial professional that evaluates the risks of insuring ...
  4. Underwriting Spread

    The spread between the amount underwriters pay an issuing company ...
  5. Personal Finance

    All financial decisions and activities of an individual, this ...
  6. Reinsurance

    The practice of insurers transferring portions of risk portfolios ...
Related Articles
  1. Understanding Your Insurance Contract
    Insurance

    Understanding Your Insurance Contract

  2. The History Of Insurance
    Home & Auto

    The History Of Insurance

  3. How An Insurance Company Determines ...
    Home & Auto

    How An Insurance Company Determines ...

  4. Exploring Advanced Insurance Contract ...
    Home & Auto

    Exploring Advanced Insurance Contract ...

Hot Definitions
  1. Gross Rate Of Return

    The total rate of return on an investment before the deduction of any fees or expenses. The gross rate of return is quoted ...
  2. Debit Spread

    Two options with different market prices that an investor trades on the same underlying security. The higher priced option ...
  3. Leading Indicator

    A measurable economic factor that changes before the economy starts to follow a particular pattern or trend. Leading indicators ...
  4. Wage-Price Spiral

    A macroeconomic theory to explain the cause-and-effect relationship between rising wages and rising prices, or inflation. ...
  5. Accelerated Depreciation

    Any method of depreciation used for accounting or income tax purposes that allows greater deductions in the earlier years ...
  6. Call Risk

    The risk, faced by a holder of a callable bond, that a bond issuer will take advantage of the callable bond feature and redeem ...
Trading Center