Classification

{
  "id": "MLC-T-INS-000786",
  "term": "Classification",
  "field": "Insurance and risk management",
  "definition": "The process of grouping applicants for insurance who have similar characteristics and exposures to risk. Insurers use these groupings to establish fair and adequate premium rates for different categories of policyholders. Common classification factors in auto insurance include age, gender, driving record, vehicle type, and geographic location.",
  "url": "https://mlchart.com/terminology/insurance/classification/"
}