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.

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community property Community Reinvestment Act of 1977