Skip to Content

nonsubject premium

Nonsubject premium is a premium that is not a part of a loss sensitive rating formula.

On This Page

nonsubject premium

Nonsubject premium is a premium that is not a part of a loss sensitive rating formula.

Additional Information


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.