Loss Costs

Loss Costs,

Loss Costs: What is the Meaning of Loss Costs?

Loss Costs means: Also known as net premium, the actual or projected cost of adjusting the distribution of claims and compensation (ALAE) for the insurance company. The cost of loss does not include overhead or profit. Historical claim costs reflect only the costs and ALAE associated with previous claims. The probable cost of a loss is estimated by estimating future losses based on historical cost trends and developments. Rating organizations such as the Insurance Services Organization, Inc. (ISO) (Automobile Civil Liabilities) and the National Accident Insurance Council (NCCI) (Workers' Compensation) prepare and publish claim rates. Insurance companies add these costs to their costs and benefits to determine the rate. Many insurers charge their rates or deviate from the rates published in the state in which they operate.

The portion of the insurance rate that is used to cover the costs of the claim and the settlement of the claim. Insurers typically set their rates by estimating the cost of their losses and including the provision of expenses, income and expected liabilities.

Literal Meanings of Loss Costs

Loss:

Meanings of Loss:
  1. The fact or action of losing someone else.

Sentences of Loss
  1. Don't waste your time

Synonyms of Loss

dropping, forgetting, mislaying, misplacement, overlooking

Costs:

Meanings of Costs:
  1. Payment (a sum of money) is required before the acquisition or realization of (an item or action).

Sentences of Costs
  1. Each issue of the magazine costs 1

Synonyms of Costs

fare, levy, fee, market price, charge, sell for, put a price on, estimate the price of, put a value on, price, evaluate, value, be, toll, estimate the cost of, put a figure on, selling price, tariff, amount to, come to, be priced at, hire charge, fetch, rental, asking price, be valued at