The portion of an insurance premium sufficient to pay an insurer's losses and loss adjustment expenses but not its marketing and administrative expenses.
The portion of the premium that covers losses and related expenses.
That part of the premium that is sufficient to pay losses and loss adjustment expenses but not including other expenses. Also, the premium developed by dividing losses by exposure disregarding any loading for commission, taxes, and expenses.
That portion of the premium which covers losses and related expenses, i.e. includes no loading for commissions, taxes, or other expenses.
The amount required by an insurer to pay losses under an insurance without taking into account the insurer's general expenses.
Property/Casualty] the value of LOSSes and in some cases LAE or ALAE per unit of EXPOSURE; see also PURE PREMlUM AT PRESENT LEVEL; (2) [Property/Casualty] the portion of premium that is required to cover losses with or without LAE or ALAE; see also PURE PREMIUM RATE
A term used in insurance rate making. It refers to that portion of the total premium which is needed to pay expected losses. It does not take into account money needed for other company expenses.
