Community rating

Community rating, as a basis for premium calculation, is fundamentally different from the usual method of determining insurance premiums, i.e. risk rating.

In a community rated market, the insurer may not calculate premium on the basis of the risk factors attaching to the particular person wishing to purchase an insurance contract, but rather the risk factors applying to all persons within the market as a whole.

Thus, in a community rated market, the insurer evaluates the risk factors of market population, and not those of any one person when calculating premiums.

[1] Some form of risk equalization also often exists in a community rated system.

Community rating of supplemental private health insurance: Community rating of basic private health insurance:

The Star of Life , incorporating the rod of Asclepius , a symbol of medical care