Deferred premium arrangement

Agreement between the insurance company and the policyholder (company or business) to extend a group insurance policy’s grace period permanently by either 30, 60, or 90 days. This allows the policyholder to use the deferred premium amounts for the length of time by which the grace period is extended. Such an arrangement is usually granted to companies with excellent credit ratings. Also called a premium-delay arrangement .

Deferred Rebate

The return of a portion of the freight charges by a carrier or conference shipper in exchange for the shipper giving all or most of his shipments to the carrier or conference over a specified period of time (usually 6 months). Payment of the rate is deferred for a further similar period, during which the shipper must continue to give all or most of his shipments to the rebating carrier or conference. The shipper thus earns a further rebate which will not, however, be paid without an additional period of exclusive of almost exclusive patronage with the carrier or conference. In this way, the shipper becomes tied to the rebating carrier or conference. Although, the deferred rebate system is illegal in U.S. foreign commerce, it generally is accepted in the Ocean trade between foreign countries.

Deferred Rebate System for Liner shipping Rebating Arrangements

A shipper who utilizes exclusively the vessels of the member lines of the conference for carriage of cargoes between the ports covered by the conference, will receive a rebate of a certain percentage (usually 10%) of his freight payments.The rebate is computed for a designated period (shipment period) usually three to six months but is paid after a period (deferred) period) of the same length following the shipment period, on the condition that the shipper has given his exclusive support to the conference lines, both during the shipment period, and the deferred period.