Adjusted Premium
Definition of "Adjusted premium"
Premium that equals the net level premium plus the modification of the net level premium to reflect the cost associated with paying for the first year initial acquisition expenses. The modification is derived by dividing the first year initial acquisition expenses by the present value of a life annuity due (thereby amortizing these expenses over the premium paying period). This is the premium used to generate a minimum cash surrender value required by the NON FORFEITURE PROVISION.
Popular Insurance Terms
Form that provides insurance coverage for the insured in the event the damage or destruction of non-owned property reduces or terminates the insured's earnings. For example, if the insured ...
Immediate taking-into-account of present interest rates, mortality experience, and expenses in premiums currently charged. This is critical to the formulation of current assumption whole ...
Coverage for an insured in the event that he writes and publishes libelous statements and the injured party brings suit against the insured. ...
Exposures usually excluded from life and health insurance, or subject to a maximum limit if covered. ...
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