Legal Definitions - rating

Rating is a term used in marine insurance and insurance in general. It refers to the evaluation of a vessel's condition or state to determine its insurability.

When a ship owner applies for marine insurance, the insurer will conduct a rating to determine the vessel's condition. The rating will consider factors such as the age of the ship, its maintenance history, and any previous accidents or damages. Based on the rating, the insurer will determine the premium to be paid by the ship owner.

Another example of rating is in car insurance. Insurers use a rating system to evaluate the risk of insuring a particular driver. The rating takes into account factors such as the driver's age, driving history, and the type of car being insured. A driver with a good rating will pay a lower premium than one with a poor rating.

These examples illustrate how rating is used in insurance to determine the level of risk and the appropriate premium to be paid.