An insurer's lowest charge for an insurance policy.
With universal life and other flexible-premium policies, the smallest amount of premium the insurance company requires to be paid in the policy's first year. Also known as the planned annual premium or guideline premium.
( prime minimale) In some lines of insurance, the premiums are so small that to continue the actual rate downward in relation to the actual amount of insurance, would somewhere produce a situation in which the cost of doing business would be disproportionate to the actual risk involved. To discourage the costly processing of the extremely small payments such business is usually subject to a "minimum premium". It is also used in circumstances when cover is given for a short period of time.
The smallest amount for which an insurance company will issue coverage under a given policy.
The minimum amount an issuer will accept to issue a policy even if the gross premium is a lesser amount.
1. The minimum or lowest rate that the insurer will charge for the coverage, policy or endorsement. 2. The lowest rate available for the least hazardous exposures within a given classification or coverage.
The lowest price for which an insurance company will sell a workers' compensation policy, regardless of how small the covered payroll. It is intended to cover certain basic administrative overhead costs.
An insurance funding strategy where the policy buyer specifies the amount of the death benefit desired and the insurer determines the minimum premium needed to fund the policy, referred to as “defined-benefit” design.
The minimum periodic payment a company will allow regardless of face amount to keep a policy in force.
The smallest premium which an insurance company will accept for writing a particular policy or bond for a designated period.
A minimum premium that must be paid even though losses do not equal the actuarial forecast.
The least amount required in order for a policy to be issued.
in some lines of insurance, the premiums are so small that to continue the actual rate downward in relation to the actual amount of insurance, would somewhere produce a situation in which the cost of doing business would be disproportionate to the actual risk involved. The underwriters in these cases, require a minimum premium which covers the administrative costs of issuing the policy.
The lowest flat or earned policy charge for which a policy will be issued or for which coverage will be provided.
The smallest amount for which an insurance company will write a particular policy. It is intended to cover the expense of issuing a policy, for which a lesser amount of premium might prove inadequate.
The minimum amount of premium dollars that must be paid in the first policy year.
The smallest amount of premium for which an insurer will issue coverage under a given policy.
The lowest amount of premium to be charged for providing a particular insurance coverage.
A cost plus arrangement whereby the employer pays the insurer only a portion of the premium which is to be used for administration costs. The remainder is placed in a "bank account" which is then used by the insurer to pay claims.
Also, known as Minimum Continuation premium is a premium that guarantees the policyholder of a Universal Life policy that the policy will remain in force even with no (or even with negative) cash value, provided this stipulated minimum premium is paid.
the smallest premium which an insurance company may charge under the rules for writing a particular policy or bond for a designated period. It is intended to cover the expense incurred in writing the policy or bond, for which the manual premium on a small policy may be insufficient.