Community Rating

Business, Legal & Accounting Glossary

Definition: Community Rating


Community Rating


Full Definition of Community Rating


A feature of an insurance plan that means that all policy holders will pay the same premium, regardless of the individual’s history or existing medical conditions. Most insurance companies have stopped using this in favor of the experience rating. With the community rating, there is a fear that only the most unhealthy or risky individuals will sign up with that company (because their premium would have been much higher on a experience rating plan), therefore costing the company a great deal of money.


Cite Term


To help you cite our definitions in your bibliography, here is the proper citation layout for the three major formatting styles, with all of the relevant information filled in.

Page URL
https://payrollheaven.com/define/community-rating/
Modern Language Association (MLA):
Community Rating. PayrollHeaven.com. Payroll & Accounting Heaven Ltd.
November 13, 2024 https://payrollheaven.com/define/community-rating/.
Chicago Manual of Style (CMS):
Community Rating. PayrollHeaven.com. Payroll & Accounting Heaven Ltd.
https://payrollheaven.com/define/community-rating/ (accessed: November 13, 2024).
American Psychological Association (APA):
Community Rating. PayrollHeaven.com. Retrieved November 13, 2024
, from PayrollHeaven.com website: https://payrollheaven.com/define/community-rating/

Definition Sources


Definitions for Community Rating are sourced/syndicated and enhanced from:

  • A Dictionary of Economics (Oxford Quick Reference)
  • Oxford Dictionary Of Accounting
  • Oxford Dictionary Of Business & Management

This glossary post was last updated: 20th November, 2021 | 0 Views.