The Statistical Basis of the Numerical Rating System

Extract

A great deal of interest was aroused by a paper entitled “The Numerical Rating System,” which was submitted to this Society by Mr. C. F. Wood a few years ago. In that paper Mr. Wood showed how the numerical ratings are used in arriving at the final terms, standard or otherwise, on which policies are issued. A basic rating for build ranging from 95 upwards, is first determined and to this basic rating are added ratings for any adverse features that are reported, these additional ratings varying from as few as 10 points for minor impairments such as remote history of pleurisy or kidney disease, slightly elevated blood pressure and absence of longevity in family history, to heavy ratings of 100 or more for very serious impairments such as mitral regurgitation and other heart impairments, glycosuria and recent history of pulmonary tuberculosis. Having allotted the appropriate numerical ratings to each adverse feature, the total is obtained and from it are deducted certain small allowances for plan and good family history if the case is entitled to them.