The goal of underwriting is to select and appropriately price the risk that is to be insured by CHRRG. This is accomplished through the application process, investigation of the proposed insured's claim history, and analysis of nationwide trends relating to loss.

CHRRG requires all new groups and physicians to complete a thorough application. Additionally, each year, all insured are required to complete a renewal application. CHRRG underwrites each application with particular attention paid to prior losses and disciplinary matters.

An investigation is conducted on all applications. This investigation may include requesting loss data from an insured's previous carrier, contacting medical licensing authorities or previous employers, and checking national databases. If the potential insured's history warrants, the application is presented to the underwriting committee for coverage determination and establishment of premium. CHRRG's underwriting process, as outlined in the CHRRG underwriting manual, ensures that each application is appropriately underwritten and each insured is charged the appropriate rate.

The first five to seven years in the program, the insured's premium is based on Medical Protective Insurance Company's final rates. The Medical Protective rates are approved by the State of Indiana and reviewed by our actuary. If the group has been insured by CHRRG for more than five years, our actuary sets its rates based upon the group's loss history and national data for the practice area of the insured. The underwriting committee has the authority to surcharge these rates or to eliminate discounts if an insured's history warrants.