Expense Loading
Definition of "Expense loading"
Amount added to the basic premium (expectation of loss) to cover an insurance company's expenses. These expenses include agent commissions, premium taxes, costs of putting a policy on the books, marketing support costs, and contingencies, current assumptions products, in order to be competitive, must emphasize low expense loadings. Companies that sell these products make special efforts to control expenses.
Popular Insurance Terms
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Amount of the loss absorbed by an insurance company after deducting any reinsurance applicable to the loss, as well as subrogation and ABANDONMENT AND SALVAGE rights. ...
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