What term refers to rates set by the insurer at a level sufficient to pay claims and company expenses?

The term that refers to rates set by the insurer at a level sufficient to pay claims and company expenses is "Rates." This concept is fundamental in insurance as it involves the calculation and establishment of the premiums that policyholders will pay. Rates are determined based on various factors including the insurer’s expected claims, administrative costs, and profitability goals.

In the context of property and casualty insurance, the rate-setting process ensures that the premiums collected are adequate to cover the incurred losses and other expenses related to underwriting, marketing, and maintaining the insurance policies. The calculation considers past loss experience, industry standards, and future projections.

Understanding the concept of rates is essential as it directly impacts the financial viability of an insurance company and the affordability of insurance products for consumers. It is important to differentiate this term from others in the context of insurance, such as loss ratio, which measures the losses incurred by an insurer relative to the earned premiums, and rating methods like experience rating or judgment rating, which are techniques used to determine specific premiums based on individual risk profiles or specific assessments rather than broad rates applied uniformly.