Term Of the Day – “A” Rates
When analyzing the premiums that very large deductible insureds pay their carriers, we often come across what is called an “A” rate. The underwriter will set the rates on an “ala carte” basis only analyzing the company on its own merits and not using the normal Workers Comp underwriting guidelines or rates to compare the insured with other like companies.
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In my experience, “A” rates are most commonly used for General Liability, especially for the Products component of the rate.
In Florida, since all rates are set by the state each year, the only way to apply discretionary pricing is by using a “Consent to Rate” pricing scheme. But these are limited to one for each 10 of a carrier’s policy count in a calendar year.