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.

 

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