Rates and Rating

From The Original Insurance Wiki

[edit] Rates - Total Premium

This uaually an annual premium.

You should include any Excess & Surplus Lines taxes applicable.

Rates - Composite Rated - Rating Basis

Many commercial policies determine the final premium based on actual exposures during the policy period. It important to have clear understanding of the rating basis and the records you will have to produce to complete a year end premium audit. Consideration should be given to calculating mid-year audit estimates to allow for proper accounting of insurance expense.

Common rating basis include sales or payroll. But other easily verificable exposure units may be used as well.