what exactly does Occupation Class mean?

by Guest » Thu Nov 10, 2011 11:59 am
Guest

Hi,

Hope an insurance expert would throw some light on what exactly does Occupation Class mean?
Are there any resource where I can consult what occupation fall under which class? I would just like to make sure that my agent has me on the right class. Thanks in advance!

Total Comments: 4

Posted: Thu Nov 10, 2011 02:33 pm Post Subject:

Your occupation class is company dependent. In other words, each company has their own occupation class. The agent will be able to show you why you are in a certain class. It is based upon your duties and not your job title. With a good contract, you can have your occupation class improved, but never have it go down.

Ex. Jim has a contract with XYZ Insurance Company, he is an Occupation Class 5 as an accountant without a CPA designation. If he gets his CPA, he should be able to get it changed to Class 6 which would keep all aspects of the contract identical, but would lower is premium.

If he subsequently quits accounting to become a ditch digger, he would remain a Class 6 despite the fact that the insurance company doesn't usually insure ditch diggers.

Posted: Wed Dec 21, 2011 08:43 am Post Subject:

Hello,

fjdkd pretty much nailed it. Each insurance company has there own set of occupational classes. However, I wouldn't worry about your agent getting the class wrong. If the agent did get it wrong, the underwriting department should catch that and make the necessary adjustments.

Posted: Fri Dec 30, 2011 04:56 pm Post Subject:

Although different underwriters use different classification orders the following list can be taken as a rough outline of who is classified into which class:

Class 1 – Corporate officers and executives, actuaries, lawyers, school teachers, architects, physicians, civil servants, brokers and agents, etc.

Class 2 – Electricians, barbers, salesmen, chemists, registered and practical nurses, etc.

Class 3 – Cooks, bartenders, mechanics, plumbers, factory workers, waiters and waitresses, etc.

Class 4 – Fire fighters, law enforcement officials, mine workers, window washers, construction workers, truck drivers, etc.

Premiums based on the class of occupation vary from insurer to insurer because each company uses a different pricing model partially based on the company’s claim history for a particular occupation class.

Posted: Mon Jan 02, 2012 11:09 am Post Subject:

I can't think of a single carrier with a good contract that has physicians, lawyers, and teachers in the same OCC class.

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