Endorsements required - Variations /changes in sum insured,Change of insurable interest by way of sale/mortgage,Extension of insurance to cover additional perils / extension of policy period, Change in risk e.g. change of construction or occupancy of the
RATE - The price of a given unit of insurance. It is not the same as Premium. Premium = Sum Insured X Rate
RATE is determined by two factors. The probability of loss due to a loss event (caused by an insured peril) and The estimated amount of loss that may arise due to the loss event
Rate Making - Process of calculating a price to cover the future cost of insurance claims and expenses, including a margin for profit
Basic objective of Rate Making - ensure that price of insurance should be adequate & reasonable. The process of classifying risks and deciding into which category they fall is important for rate making
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