Compensating Balances Plan


Definition of "Compensating balances plan"

Trish Lambert real estate agent
Trish Lambert, Real Estate Agent Long and Foster at Lake Anna

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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