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.

Use community rating in a sentence

There was a community rating that made it all equal to everyone there and that was a good thing to see.

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The community rating nature of the policy meant that the community shared in its fellow human beings decisions across many fields.

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The insurance company representative visited the nursing home in hopes of signing up many of the residents, ensuring all of them a plan with a desirable community rating.

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community property Community Reinvestment Act of 1977