The methods used for the premium rates establishment are:

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The premium rate establishment methods used are manual, judgmental, and merit rating. Manual rating is a method in which an insurer uses a rate manual to determine the premium rate based on the insured's characteristics. Judgmental rating is a method of rate making in which an underwriter uses his or her experience and expertise to determine the premium rate. Merit rating is a method of rate making in which an insurer adjusts the standard premium rate based on the insured's loss history or other factors. These methods are all commonly used in the insurance industry to establish premium rates.

The Methods Used for the Premium Rates Establishment Are