A general term that can have many different meanings. This term can refer to a premium with the amount of the agent’s commission deducted. This term can also mean the portion of the premium required to pay expected future losses. This term can also refer to the premium amount with the amount of dividends that have been appointed to pay part of the premium deducted.
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In health Insurance, portion of the gross premium needed to pay benefits provided by the Insurance contract, with no allowance for the Insurer’s expenses or profit. The property liability equivalent is “pure premium.”
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Premium less expense, such as commission.
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The amount of the premium that is left after the subtraction of some or all permitted deductions such as brokerage and (for certain types of business) profit commission.
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Total written premium or earned premium less provision for ceded reinsurance premium and, on occasion, certain expenses such as commissions. Pure premium (01) The value of losses and in some cases LAE or ALAE per unit of exposure. (02) The portion of premium that is required to cover losses with or without LAE or ALAE.