A fraction of the standard premium. This portion is used for administrative costs and agents’ commissions.
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Insurance Premium paid at the beginning of the coverage period under a retrospective rating plan. It is percentage of standard premium and is designed to give the Insurer the money needed for administration expenses and the Agents commission plus on Insurance charge.
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RAW,MEDICAL,USA: Premium for workers’ compensation or life insurance that takes into consideration the following: an individual having an average expectation of loss, insurance company’s administrative expenses, and insurance agent’s commission. Also called standard premium rate .