Definition of "Expense constant"

Ron Quatkemeyer real estate agent
Ron Quatkemeyer, Real Estate Agent ERA Real Soultions Realty

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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