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premium, advance

The premium, advance is charged at the inception of the policy in cases where the final premium of the policy is not determined until the policy has expired; for example, where the policy premium is determined on an exposure base such as payroll that is subject to final audit adjustment.

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Additional Information


This term may encompass what is known as a "provisional" or "deposit" premium.

Related Terms


In property and casualty insurance, the deposit premium is the premium deposit required by the...