YOU ASK:
What is the definition of Experience?
WE ANSWER:
Experience refers to the insurance company's record of losses, for a specific account, for a certain line, for a specified client, or any other category defined by the insurance company. The relevant information included may be the date the loss occurred, the amount of the loss, the type of loss and whether that loss is closed or open.
For new business, the insurance company would usually ask for the company's loss experience records so that it will know how to set the premiums. Thus, it will be good for a company to keep the records of losses reports its insurer provides.
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More insurance terms around experience:
- Exposure
- Extended Coverage
- Extended Replacement Cost Coverage
- Extended Term Insurance Option
- Face Amount
- Facultative Reinsurance
- Fair Access to Insurance Requirements Plans / Fair Plans
- Family Benefit Coverage
- Farmowners-Ranchowners Insurance
- Federal Funds
- Expense Ratio
- Exclusive Remedy
- Exclusive Agent
- Exclusion
- Excess of Loss Reinsurance
- Excess and Surplus Lines
- Escrow Account
- Errors and Omissions Coverage (E&O)
- Equity Indexed Annuity
- Equity