A flat charge that the policyholder must pay on each new or renewal policy to defray the expenses of the Federal Government related to flood insurance.
In insurance, a flat charge added in the computation of the premium where the pure premium is so low that the cost of issuing and servicing the policy cannot be recovered. (See also: loss constant.)
A charge which is applied to every policy and is added to the premium. It covers expenses such as those for issuing and recording policies and auditing. Most carriers are currently using an expense constant of $150 - $200.
A flat amount sometimes imposed in workers compensation insurance if the estimated premium is less than the specified amount. Intended to pay the cost of issuing and servicing a small policy.
A policy fee charged on every WC policy, regardless of premium size, to compensate for the basic costs of administering the policy.
A flat premium charge made on small workers compensation policies based upon the fact that the expense factor on such risks is inadequate to cover the cost of issuing and handling the policy.
(p) - the policy expense fee portion of the flood insurance premium. The fee covers the government's cost of writing and issuing flood policies.
A small flat expense charged to Workers' Compensation policies.
