Which rating uses an underwriter's personal judgment rather than a prescribed rate manual?

The rating that employs an underwriter's personal judgment instead of relying on a set rate manual is Judgment Rating. This approach allows underwriters to assess risks on a case-by-case basis, taking into account unique factors associated with each individual application or policy.

Judgment Rating is particularly useful in situations where the risk is atypical or where there is insufficient historical data to apply a standardized rate. Underwriters draw on their expertise and experience to determine the appropriate rate, allowing for a more tailored and flexible pricing strategy that can better reflect the individual risk presented.

In contrast, other rating methods such as Loss Cost Rating and Manual Rating utilize established formulas and data from rate manuals to formulate premiums, while Experience Rating adjusts premiums based on the policyholder's specific claim history or experience rather than individual judgment. This distinction is vital in understanding the flexibility and tailored approach of Judgment Rating in the underwriting process.