Compensating Balances Plan

Definition of "Compensating balances plan"

Roopa Nampally real estate agent
Roopa Nampally, Real Estate Agent RE/MAX One

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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