Insurers make notes in underwriting files, such as the fact that an insured never had a claim in five years and that the filed rate with the state is $2,000 and that the filing with the state indicates up to 25 percent credit may be applied against this rate. Extenuating circumstances could be that the ten lawyers have been in business for five years and have never had a claim, in which case as much as 25 percent credit may be applied to the filed premium rate with the state. From the filed rate, a variance may be charged such as 25 percent more or 25 percent less, given extenuating circumstances. For example, $200 will be charged for each lawyer in a law firm, and, if there are ten lawyers in a law firm, 10 x $200, or $2,000 will be charged. For instance, the premium rate that is filed with a state reflects that x number of dollars will be charged for liability insurance for law firms. Premium rates for a new customer are determined by first looking at the class of business. Insurance companies also carefully invest the premium received from policies to earn a reasonable return and have investments mature to match the timeframe in which it will be paying claims. In addition to simply selling new policies, insurance companies make money through good service, which creates repeat buyers. Three years from now, the hospital could have $3 million in claims, and we'd have only $900,000 in premiums, so we would have taken quite a loss. When we analyzed it, we decided we would rather have 1,000 risks at $4,000 each than one big risk at $800,000 or $900,000. Our company could write a hospital for an $800,000 premium - a large premium - but we think the risk is too great. The premium is not large, but there are not many claims, either.