Definitions for "Deposit Premium"
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.