When the price of insurance is tied to fluctuating values or costs that cannot be known until the end of the policy period, inventory or payroll are two common examples, a deposit or provisional premium or estimated premium may be charged at the outset of a policy with final adjustment to come at the end of the term.
A premium deposit required by an insurance company on those forms of insurance subject to premium adjustment. Also called provisional premium. (See also: advance premium.)
A premium deposit paid for an insurance policy.
That premium paid at the inception of the policy based on known or expected exposures. Premium is adjusted following an audit, to reflect the actual exposures during the policy period.
A premium paid at inception of the treaty, or in instalments during the treaty year, which is subject to adjustment at a later date. A deposit premium may also represent the minimum payable or the minimum premium required might be set at some other figure.
A premium which is based on the probable amount of payroll, and is calculated at the beginning of the policy year.
This is the premium that was calculated when the policy was issued. It consists of a total of all class code premiums calculated. The premium is determined by multiplying the applicable rate to the exposure.
Premium paid at the beginning of the policy period that is based on an estimate of what the final premium will be. This premium is adjusted based on reports submitted by the insured to the insurer. Also called an estimated premium.
The premium deposit paid by a prospective policy holder when an application is made for an insurance policy. The actual premium when billed.
The money paid by a prospective policyholder when an application is made for an insurance policy. It is usually equal, at least, to the first month's estimated premium and is applied toward the actual premium when billed.
Premium paid at the beginning of a policy that sets forth future premium adjustments.
this is often called an advanced premium and is a premium paid at the inception of the policy when there is likely to be a substantial variation in values over the policy period. At the end of the term the actual premium is calculated against the actual values at risk and a refund or additional charge is applied. This same principal applies when receipts or payroll are the basis of the premium computation such as in liability policy.
The advance premium required by a surety company on those forms of bonds which are subject to premium adjustment.
An estimated policy premium based on an exposure basis such as sales or payroll, which is subject to variation.
A tentative charge made at the beginning of certain policies and reinsurance agreements, to be adjusted when the actual earned charge has been later determined. Also known as initial premium.
The amount required in order to place a Stop Loss policy in force, generally the first month's premium.
A payment in advance as a deposit pending determination of the actual premium.
(Prime de dépôt) A premium which is based on an estimate and is subject to adjustment at renewal or some other agreed time, on the basis of actual figures.
This is the initial premium paid by the prospective policyholder when the insurance application is filled out. This is generally equal to the first month's premium and is applied towards the first month's actual premium
an advance payment made by the insured before the actual premium has been decided.
The premium paid at the inception of a contract which provides for future premium adjustments. It is based on an estimate of what the final premium will be.
The amount of premium required at the beginning of a policy prior to the actual premium being determined.
The premium deposit paid when an application is made for an insurance policy. It is usually equal to the first month of estimated premium and is applied toward the total premium when billed.
Premium payment that is submitted with the application for insurance. It is based on an estimate of the actual premium. (See also, Estimated Premium.)
It refers to the premium deposit paid when an application is made for an insurance policy.
An advance payment made by the insured before the final premium has been calculated.
A deposit premium is a type of insurance premium where the insured deposits money with the insurer to obtain perpetual insurance against the risk of a loss. Deposit premiums are unique from regular insurance premiums, because they are refundable should either the insured or the insurer chose to terminate the perpetual insurance.