The various formulae for computing the application of a rate where the period of the Policy is under or over one year. Short term rate will be usually higher than the proportionate annual term rates. In contrast long term rate would be less than the proportionate annual term rates. This is because of increased or deduced overhead costs.
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A clause, found within a rating manual, detailing the term during which coverage is valid, and any discounts that apply to policy rates on policies of one year or more.