Compensating Balances Plan

Definition of "Compensating balances plan"

Cheryl Landwehr real estate agent
Cheryl Landwehr, Real Estate Agent Smith & Associates Real Estate

Premium paid by an insured business to an insurance company from which the company subtracts charges for the cost of putting a policy on its books, premium taxes, and profit. The remainder of the premium is deposited in the insured business's bank account from which the insured business can make withdrawals.

Have a question or comment?
We're here to help.

*** Your email address will remain confidential.


Popular Insurance Terms

Popular Insurance Questions