Definition, Meaning & Synonyms

insurance-class

Noun

/ɪnˈʃʊərəns klæs/

Definition

Insurance class refers to a category assigned to individuals or items based on certain characteristics, which determines the premium rates for insurance policies.

Examples

Auto insurance companies often categorize drivers into different insurance classes based on their driving history.
Health insurance plans may differ in costs depending on the insurance class assigned to an individual based on their medical history.
Understanding your insurance class can help you find better coverage options and potentially lower premiums.

Meaning

The concept of grouping policyholders or insured items in accordance with specific criteria, such as risk factors or underwriting standards, helping insurance companies assess risk and set appropriate premiums.