YOU ASK:
What is the definition of Community Rating Laws?
WE ANSWER:
Community Rating Laws are laws that are enacted in several states and decree that all health insurance applicants are charged the same premium. The applicant's age, gender and health are not factors that are used to determine the premium for the health insurance. Everyone pays the same prince for the same benefits package since premiums are based on the demographic and health profile of that state or region.
Community Rating Laws are applied only to health insurance and not on any other insurance product. For other insurance products, say life insurance - health and age play an important factor in pricing. For auto insurance, drivers with bad driving records are made to pay higher premiums.
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More insurance terms around community rating laws:
- Commutative Contract
- Competitive Replacement Parts
- Competitive State Fund
- Complaint Ratio
- Completed Operations Coverage
- Comprehensive Coverage
- Compulsory Auto Insurance
- Contestable Period
- Contingent Beneficiary
- Contingent Liability
- Commission
- Commercial Paper
- Commercial Multiple Peril Policy
- Commercial Lines
- Commercial General Liability Insurance (CGL)
- Combined Ratio
- Collision Coverage
- Collateral Source Rule
- Collateral Assignment
- Collateral