nonsubject premium
A premium that is not a part of a loss sensitive rating formula. For example,
in a retrospective rating plan, the nonsubject premium usually purchases the
excess insurance (over the loss limits). The expression "nonsubject" refers
to the fact that the premium is a guaranteed cost and not adjustable based on
losses.
Links for IRMI Online Subscribers Only:
IWC XI.M;
RF III.F