Definitions for "Standard Premium"
Most often used in connection with retrospective rating for Workers Compensation and General Liability Insurance. It is the premium of which the basic premium is a percentage and is developed by applying the regular rates to an insured's payroll. See also Retrospective Rating and Basic Premium.
Standard premium means the premium determined on the basis of authorized rates, any experience rating modification, any applicable schedule rating modification, loss constants and minimum premiums. The expense constant and taxes should be excluded from determination of the standard premium.
A charge that covers the actuarial likelihood of losses and adjusting expenses s well as acquisition and administrative expenses of the insurer. It normally also includes a profit. It is normally paid as an initial or deposit premium.