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assessment company

An assessment company refers to an insurer that retains the right to assess additional charges above initial premium when those premiums are shown to be inadequate to cover the costs of operation.

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Additional Information

This is usually a mutual or reciprocal type of insurer.

Related Terms

A mutual company is an insurance company that is owned by its insureds.

A reciprocal is an unincorporated group of individuals or organizations (subscribers) that agree to...