Definitions for "Expense Constant"
A flat charge that the policyholder must pay on each new or renewal policy to defray the expenses of the Federal Government related to flood insurance.
In insurance, a flat charge added in the computation of the premium where the pure premium is so low that the cost of issuing and servicing the policy cannot be recovered. (See also: loss constant.)
A charge which is applied to every policy and is added to the premium. It covers expenses such as those for issuing and recording policies and auditing. Most carriers are currently using an expense constant of $150 - $200.