Define: "Rate Banding"
The process of grouping term life insurance death benefit amounts. The rate per thousand typically changes at certain death benefit levels or band breaks.
More Examples of Rate Banding
"A property insurance rating method where the type of building or occupancy is used to determine the rate. The rating bureau establishes rates for various building construction types (e.g., wood frame, brick, etc.) and protection classes and for occupancy by hazard categories (e.g., office, computer manufacturing, etc.). This information is published in a manual used by underwriters. If the rate classification is not listed in the manual, the risk must be specifically rated. "
"The practice, known as "rate-banding,'' would allow insurers to reduce premiums for small employers with healthy workers by as much as 35% below the median rate insurers file with ...
"One of the three components of HB 1164 is rate banding, a process that allows insurance providers the ability to offer lower rates to healthy individuals."
Further details - Rate Banding:: Search NECA