Which type of individual rating method involves making a list of a commercial building's characteristics and adjusting the premium accordingly?

The correct choice is the schedule rating method because it involves creating a detailed list of a commercial building's characteristics, such as location, construction type, occupancy, age, and protective features. Each of these characteristics is then assigned a value or factor that adjusts the premium accordingly. This allows insurers to tailor the policy more closely to the specific risks associated with that building, resulting in a premium that accurately reflects the individual risk profile.

This method contrasts with manual rating, which uses a standardized approach to set premiums based on broad categories without adjusting for specific characteristics of an individual property. Experience rating also differs as it adjusts premiums based on the insured’s historical loss experience rather than specific property features. Exact rating is not a commonly used term in this context and does not typically refer to a recognized method of assessing insurance premiums based on property characteristics. Thus, schedule rating is the method that best fits the described process.