Acquisition Cost Term

Definition of "Acquisition cost term"

Linda D. Thomas real estate agent
Linda D. Thomas, Real Estate Agent Charles Rutenberg Realty

Expense of soliciting and placing new insurance business on a company's books. It includes agent's commissions, underwriting expenses, medical and credit report fees, and marketing support services. Because of competition, significant efforts are made by insurance companies to lower acquisition costs. Traditional captive agent companies have often turned to brokerage as additional distribution or sole distribution channels for this reason.

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