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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Rating system under which a specific premium rate, rather than a manual or class rate, is assigned to each unit of exposure. ...
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