Definition of "Initial premium"

Yogi Shah real estate agent
Yogi Shah, Real Estate Agent Realty Mark Platinum

Premium paid at the time a policy goes into effect. With some policies, such as group health insurance, premiums are subject to adjustment at the end of the policy period to reflect loss experience. If the loss experience is good (that is, if the losses are smaller than anticipated in the premium loading), a significant premium reduction can be made at the end of the policy period, with a refund going to the policy owner.

 

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