Expense Loading

Definition of "Expense loading"

Heidi Everywhere  Group
Heidi Everywhere Group Engel & Volkers

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.

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