Definitions for "LOSS CONSTANT"
A flat sum or amount included in the premium of a risk too small for experienced ratings to be applied. It is generally associated with workers' compensation insurance.
Used primarily in workers compensation insurance, a flat charge added to the premium of small risks to offset the higher loss ratios produced by such risks. Also used in some states in fire insurance premiums for low-valued dwelling risks to offset the higher loss ratios they produce.
A flat charge added to the premium of small workers' compensation policies to offset higher loss ratios.