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% Common definitions for premium calculation
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\sectiondept{it}
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\sigauth{MTG}
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A \dfn{premium calculation}---or simply \dfn{calculation}---is an algorithm that
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\index{deterministic}deterministically operates on ^[input data] described in
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\sref{indata} and yields a numeric \dfn{premium}.
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\sigauth{MTG}
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\p{finalprem}
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A \dfn{premium!final premium} is the ^[premium] that represents the total cost
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to the insured and \shall be represented by a ^[floating-point] number rounded
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to the nearest representable value of two decimal places, in which the whole
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integer value \shall represent a dollar amount and the fractional value \shall
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represent cents. There \shall be only one final premium.\footnote{Multiple
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^[final premium]s may be obtained through multiple calls to the~^[rater].}
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\sigauth{MTG}
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A calculation \dfn{calculation!consideration} is defined as the point when an
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implementation determines if the calculation is applicable to the ^[input data].
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\sigauth{MTG}
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\p{calc-supp}
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All defined rating calculations \shall be considered even if they exist outside
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of any dependency tree that arrives at the ^[premium!final premium].
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Calculations that are not directly used to determine the ^[premium!final
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premium] are termed \dfn{calculation!disjoint calculations}.\footnote{This
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allows supplementary data to be calculated.}
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\sigauth{MTG}
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\p{calcapplicable} A calculation \shall be
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\index{calculation!consideration}considered to be applicable if its defined
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^[classification] conditions are met.
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\sigauth{MTG}
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An applicable calculation \shall undergo \dfn{calculation!evaluation}, yielding
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a~premium that is the result of the application of the ^[input data] to its
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definition.
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\sigauth{MTG}
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A calculation that has been determined to be inapplicable \shallnot execute any
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portion of its definition and \shall yield the scalar floating-point
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value~$0.00$.\footnote{The definition \shallnot be executed because it cannot
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reliably do so without the proper data (as determined by its required
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classifications).}
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\sigauth{MTG}
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A calculation \may treat the result of another calculation as ^[input data].
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\sigauth{MTG}
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A calculation \may treat the result of a~^[classification] (see
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\sref{dataclass}) as ^[input data].
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\sigauth{MTG}
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Where it is required that a calculation be performed for each ^[location], the
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implementation \shall make such a determination either by (a)~use of a
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^[parameter] defined in \sref{locparam} that is always available or (b)~an
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implementation-defined ^[parameter] that explicitly provides the location count.
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For either case, an implementation \must fail in error if the location count
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cannot be determined.
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\sigauth{MTG}
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In the sections that follow, the following conventions \shall hold: (a)~Any
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reference to a table value, unless otherwise stated, \shall be located by
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matching the ^[parameter]s in the table column headers with the value of the
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associated argument in any input data; (b)~any ^[parameter] containing the
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term~``rate'' represents a~value obtained in an implementation-defined manner
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and an implementation \must fail in error if such a value cannot be obtained as
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mandated by the calculation definition.
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