What Does Schedule Rating Mean?
Schedule rating is the practice of either reducing or increasing a policyholder's premium based on certain conditions or factors. These conditions or factors are related to how much risk the insurer takes on.
Insuranceopedia Explains Schedule Rating
States grant insurers the right to make schedule rating a feature of its insurance products. Schedule rating gives insurance companies and their underwriters the power to give the insured either insurance credits or debits.
One example of this conditional modification could be a stipulation that the insured will receive a discount on their property insurance premiums if they install certain security devices in their homes or on their property.