IdemRt definition
Maybe I am missing something really basic but IdemRt is defined as
"Indemnity Rate in dollars per unit insured"
However as per the formula IdemRt = Idem$ / L$
where:
Idem$ = Indemnity (in dollars) paid by insurer to insured
L$ = Liability (in dollars) that insurer assumes
The formula seems to imply the definition should really be Indemnity Rate in dollars per $1 of liability. Similar to homeowner's TIV rates not per unit insured which I interpret as bushel of crop.
Comments
I think your explanation makes sense to me. @graham maybe we can tweak the wording here a little?
Let me take a look...
Ok, I think that makes sense. Thx! I changed the wording slightly here:
Or here's the wiki link:
Hi @graham, should we not update the definition of Premium Rate as dollar per $ of liability as well?
yeah I think so
Fixed! Thx!