You have several options when implementing rate adjustments, so before you implement a rate adjustment, read the Core concepts section for information about making accurate rate changes and applying them to the correct items.

## Core concepts

• Rate changes are applied on a per effective date basis, and you should implement rate changes only on future effective dates.
• Rates can increase by a flat dollar amount.
• Rates can increase/decrease by a factor:
• A factor of 1.0000 results in no rate change.
• A factor of 1.2500 results in a 25% rate increase as you take 1.0000 (100% of the current rates) and then add 0.2500 (25%).
• A factor of 0.9500 results in a 5% reduction in rates as you take 95% of the current rates.
• Rate changes can apply to policy types or line items.
• The Lines module has two sections: Primary Exposures (Property) and Policy Wide (Policy). When applying rate adjustments to line items or sublines, ensure you reference the correct section according to your lines setup.
• Rate adjustments aren’t supported in the Lines module when you use the evaluation rate object.
• Rate changes can be part of a line item’s rate chain.

Example: You can increase Coverage A’s base rate without changing any other factors. Rather than increasing all Coverage A factors, simply change the base rate.

1. In the BriteCore menu, select Lines.
2. On the Effective Dates screen, select Add a New Effective Date .
3. In the Effective Date dialog box, complete the following steps:
1. In the Date boxes, type the date the effective date will take effect. Make sure you choose a date in the future.
2. In the Description box, type a description for the effective date.
3. Select Done.
4. On the Effective Dates screen, select the effective date you created.
5. On the Policy Types screen, select the Utilities dropdown list, and then select Rate Adjustment.
6. In the This Formula section, complete one of the following steps:
1. To increase rates by a dollar amount, select Increase Rates By, and then, in the amount box, type the amount you want to increase rates by.
2. To multiply rates by a factor, select Multiply Rate By a Factor of, and then, in the factor box, type the factor you want to multiply rates by. To increase the rate, enter a factor over 1.0000. For example, a 5% rate increase would be a factor of 1.0500. To decrease the rate, enter a factor under 1.0000. For example, a 10% rate decrease would be a factor of 0.9000.
7. In the Applied to These Items section, select the checkbox across from each item you want to apply the rate adjustment to. Select the folders to view all of the available items.
8. Select Process.