Skip to Content

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.

On This Page

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...