The percentage of insured loans in a given category that are expected to result in claims over a specified time period. For example, fixed rate mortgages would have a different conditional claim rate than those with an adjustable rate. Factors such as a poor credit score and a high loan-to-value ratio can increase the conditional claim rate for a given class of mortgages. Mortgage insurance providers use the conditional claim rate to evaluate risk and determine the amount of funds that should be reserved to cover potential claims.