Policy administration department

See: customer service department.

Policy advisory group

Generic name for many work groups at Workgroup on Electronic Data Interchange (WEDI) and elsewhere. WEDI is a subgroup of the Accreditation Standards Committee X12 that has been involved in creating electronic data interchange standards for insurance billing transactions.

Policy anniversary

MEDICAL,USA,REFERENCE: See: anniversary date.
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The anniversary of the date a policy began. This information is usually listed within the policy’s declarations page.
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The anniversary of the date of issue of a policy as show in the policy declarations.

Policy charge

See: policy fee.

Policy conditions

The section of an insurance policy that identifies general requirements of an insured and the insurer on matters such as loss reporting and settlement, property valuation, other insurance, subrogation rights, and cancellation and nonrenewal. The policy conditions are usually stipulated in the coverage form of the insurance policy.

Policy Contract

An Insurance contract embodied in a Policy.

Policy Date

See: “Effective Date.”

Policy dividend

A dividend paid to the policy holder, made up of a fraction of the premium he or she has paid. It is intended to signify the disparity between the gross premium amount and the actual cost of the policy.

Policy expense allowance

An amount payable to the cedant by the reinsurer in lieu of actual commissions and expenses incurred by the cedant.

Policy Fee

A charge by an insurer for issuing a policy, as distinct from the premium.
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US: A one-time charge or flat per policy charge that does not change with the size of the policy.
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MEDICAL,USA: Dollar amount that an insurer adds to the basic premium rate to cover the insurer’s cost of issuing a policy, setting up the required records, and sending premium notices. Also called policy charge.