This Insurance Glossary of Terms is produced and maintained by the National Alliance Research Academy. 
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Retrospective Rating

Rating plan that adjusts the premium, subject to a certain minimum and usually a maximum, periodically to reflect the actual loss experience of the insured.  Retrospective rating combines actual losses with graded expenses to produce a premium that more accurately reflects the current experience of the insured. An adjustment is performed periodically following policy expiration to recognize the fluctuation in losses.