Auto Insurance Risk Selection
July 29th, 2009
by: Djai Tanji
When the vehicle insurers decide on whether to insure an individual or not, and determine what insurance premium to settle on, that is called an Auto Insurance Risk Selection. The insurance premium can either be decided on by the insurance company in agreement to an outline of regulations set by the government or it can be authorized by the government itself. It depends on the jurisdiction. Most of the time, it is the insurer who have more liberty to set the price on the coverage for the physical damage than on mandatory coverage by liability. An actuary calculates the statistical data if the premium is not authorized by the government.