Definition of "Expense constant"

Kimberly Ward Broker real estate agent
Kimberly Ward Broker, Real Estate Agent Market Group Real Estate

Flat dollar amount that is added to the pure premium for an insured risk that is smaller than that of the lowest experience rating band. This dollar amount serves the purpose of generating enough additional premium dollar to cover the cost of issuing and servicing an insurance policy on a risk whose size does not readily allow it to be experience rated.


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