Experience rating
Experience rating (alternatively known as merit rating) is a rate assigned by an insurance company to determine the cost of insurance coverage. This rate is based on the physical difficulty of jobs within various industries and the history/cost of prior employee accident claims submitted.
Definitions
According to College Accounting: A Practical Approach by Slater (13th edition),
- Experience rating (merit rating). A rate assigned by an insurance company to determine the cost of insurance coverage. This rate is based on the physical difficulty of jobs within various industries and the history/cost of prior employee accident claims submitted.
Related concepts
- Accounting (alternatively known as accountancy) is management of financial data, information, and knowledge about financial transactions of legal entities. Accountancy tends to include bookkeeping and, depending on a particilar enterprise, may also include quatitative analysis of financial data in the bookkeeping system and/or business intelligence.
