Which of the following is NOT a characteristic of class rating?

Class rating is a method used in insurance that involves categorizing risks into groups based on similar characteristics, allowing for standardized premium calculations. One of the defining features of class rating is consistency in premium assessment, meaning that risks that fall into the same category are treated similarly in terms of premium pricing. This approach relies on statistical data to evaluate and compare risks, further emphasizing the reliance on empirical data for insurance underwriting.

The notion of uniformity among diverse risk types, however, does not accurately reflect the essence of class rating. While class rating does aim for consistency, it is inherently designed for groups with similar risk profiles rather than trying to create a uniform premium across very different types of risks. Each class will have its own characteristics, and thus, differences among risk types are acknowledged and result in different premiums.

The streamlined underwriting process is another advantage of class rating, as it simplifies the evaluation of risks by enabling insurers to quickly categorize them without extensive individual analysis. Therefore, while class rating promotes consistency and efficiency, it does not aim for uniformity across diverse risk types, making that the distinguishing factor of the correct answer.