Underwriting
Risk Classification
The underwriting process of assigning a law firm to a rating category based on factors that predict the likelihood and severity of future claims. Key classification factors include the firm's primary practice areas, with plaintiff personal injury and real estate carrying higher risk profiles, firm size, geographic location, and years in practice. Risk classification directly determines the base premium rate applied to the firm before individual experience modifications and risk management credits are factored in.
Related terms
Experience RatingAn underwriting method that adjusts an insured's premium based on their individual claims history re...UnderwritingThe process by which an insurance carrier evaluates the risk presented by a prospective insured and ...Premium AuditA post-policy-period review conducted by the insurance carrier to verify that the premium charged ac...