Compensating Balances Plan
Definition of "Compensating balances plan"
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.
Popular Insurance Terms
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Frequency of illness, sickness, and diseases contracted. ...
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