Definitions for "MINIMUM PREMIUM"
An insurer's lowest charge for an insurance policy.
With universal life and other flexible-premium policies, the smallest amount of premium the insurance company requires to be paid in the policy's first year. Also known as the planned annual premium or guideline premium.
( prime minimale) In some lines of insurance, the premiums are so small that to continue the actual rate downward in relation to the actual amount of insurance, would somewhere produce a situation in which the cost of doing business would be disproportionate to the actual risk involved. To discourage the costly processing of the extremely small payments such business is usually subject to a "minimum premium". It is also used in circumstances when cover is given for a short period of time.
A type of partial self funding arrangement wherein the insurance company assumes the risk but charges the plan monthly fixed costs plus paid claims up to predetermined limits. It is usually characterized by a deficit carry-forward provision.
Keywords:  surety, least, bond, particular, charge
The least amount a surety company may charge for a particular bond for a designated period.