The amount paid or payable, often in instalments, by an insured person or policy holder to an insurer or third party payer for insurance coverage under an insurance policy. Premiums are paid for coverage whether benefits are used or not.
A method for the determination of health insurance premiums that spreads the risk among members of a large community and establishes premiums based on the utilization experience of the whole community. For a set of benefits, the same rate applies to everyone regardless of age, gender, occupation or any other indicator of health risk.... community rating
Payment method whereby a person is required to pay some health costs in order to receive medical care. The general set of financing arrangements whereby the consumer must pay out-of-pocket to receive care, either at the time of initiating care or during the provision of health care services, or both. Cost sharing can also occur when an insured person pays a portion of the monthly premium for health care insurance.... cost sharing
In insurance, the process of selecting, classifying, evaluating and assuming risks according to their insurability. Its purpose is to make sure that the insured group or individual has the same probability of loss and probable amount of loss, within reasonable limits, as the universe on which premium rates are based. Since premium rates are based on an expectation of loss, the underwriting process must classify risks into groups with about the same expectation of loss.... underwriting
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