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Foundations of Casualty Actuarial Science

Base Rates
A manual rate applied to a class of policies or to similar
characteristics of a particular risk in a given territory or
classification for a basic limit of liability; price per unit of insurance.

Basic Limits
The minimum amounts of insurance for which it is the practice
to quote premiums in liability insurance; additional amounts
are charged for by the addition of certain percentages of the
premium for the minimum (basic) limits.

Calendar Year Experience
Loss experience calculated by matching total value of all losses
incurred during a given 12 month period with the premiums earned
for same period.

Case Reserve
The estimated amount of a claim payment; the sum of the values
assigned to specific claims by the entity’s case reserving
procedure.

Claim
A demand received by an insured for damages resulting from a
medical incident, event or occurrence.

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