Adjustment premium

An additional premium payable under the terms of the contract as a result of claims experienced under a policy of insurance or reinsurance.

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An additional or return premium that is payable in relation to a deposit premium depending on the performance of an insurance or reinsurance contract.

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The adjustment premium is a further premium payable at the end of a period of cover. This may result from the use of retrospective experience rating or from a situation where the exposure cannot be adequately determined at the start of the period of cover.

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