A policy cancelled on the effective date. Usually, no premiums have been paid.
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REFERENCE: See: Cancellation.
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US: The cancellation of an insurance policy or bond as of its effective date, before the insurer has assumed liability. This requires the return of paid premium in full since the insured has never been covered under the policy.
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When liabilities have not existed thereunder, policies may be cancelled free of any charge to the insured. Such terminations are knows as flat cancellations.
Insurance Encyclopedia
Flat Commission
Remuneration paid to an Agent of the basis of a straight percentage of premium for all types of risks and policies as compared to a graded scale of separate percentage for different types of policies.
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A standard commission that is paid to the insurance agent no matter what kind of policy has been sold.
Flat Deductible
A deductible which is not one of the disappearing or franchise type. A specific amount deducted from each loss or claim.
Flat deductible (Property Insurance)
A particular sum deducted from every loss or claim filed.
Flat extra premium method
System for rating substandard insurance risks that is used when the extra risk is constant. Usually it is a specific extra premium for each $1,000 of insurance coverage.
Flat fee-per-case
Payment of one fee to a provider to cover all services related to a patient’s treatment based on diagnosis (episode of care) or presenting problems. Also called bundled rate or case rate .
Flat Line
Reinsurance of a fixed amount, whether whole or part of the insurer’s line.
Flat line (or first interest) reinsurance
Marine insurance whereby the reinsurer receives all of the cedant’s interest up to a predetermined amount. For example, if an underwriter accepts £100,000 on a vessel and reinsures £50,000 on a first interest basis, any amount ‘closed’ up to £50,000 will be ceded to the reinsurer. If only £80,000 is closed to the underwriter it is his share of the risk that goes down as the reinsurer’s line holds good in the sum of £50,000.
Flat Maternity Benefit
A stipulated benefit in a Hospital Reimbursement policy that is paid for maternity confinement, regardless of the actual cost of the confinement.
Flat maternity benefit (Health Insurance)
A benefit that pays all hospital costs associated with an admission for maternity care, no matter how much the cost of the stay.