Definition of "Retro-note plan"

Sheri  Lipsey real estate agent

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Sheri Lipseyelite badge icon

Weichert, Realtors Innovations

Means of financing by which some large organizations pay their property or liability insurance premiums to reflect losses actually paid during the first year of coverage, plus claims expenses, administrative and servicing expenses, and a loading for the company's profit. The insured signs a promissory note to the company for the difference in the normal or standard premium that should have been charged.

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