Rates that are established based on the similarities of the risk with other risks are known as insurance risk
An insurance risk class or group of individuals that a companies that have the similar to characteristics, which are being used to determine the risk of associated with underwriting a new of the policy and the premium that should be charged for the coverage. Determining the type of insurance risk class is a primary component of an insurance company’s and also underwriting process.
An insurance risk is so to threat or peril that the insurance company must has agreed to insure against the policy wordings. These types of the risks or perils have been the potential to cause the financial loss such as property damage or bodily injury if it was to occur in future.
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