A charge added to the premium amount. Most often, this is done to worker's compensation policies, or other small policies that have low premiums. The cost of servicing these policies is too much to recoup on premiums alone.
Related information about expense constant:
- expense constant - Insurance Glossary
expense constant - A fixed, flat expense charge applied to every workers compensation policy in states using advisory rates.
- Expense Constant: Definition from Answers.com
Expense Constant Flat dollar amount that is added to the pure premium for an insured risk that is smaller than that of the lowest experience rating band.
- What is expense constant? definition and meaning
Definition of expense constant: A charge added to the premium amount. Most often, this is done to workers compensation policies, or other small policies that ...
- Expense constant - Merriam-Webster Online
a flat amount included in workmen's compensation insurance rates for small risks in order to cover the costs of issuing and servicing the policy. This word doesn't ...
- EXPENSE CONSTANT SUPPLEMENT
Space Reserved for Insurance. Department Use. OTHER THAN WORKERS' COMPENSATION. LOSS COST FILING DOCUMENT COVER FORM. INSURER ...
- Understanding the Cost Of Your Policy
Add the “expense constant.” Calculate the “final audited premium.” Subtract “ dividends” or refunds. Once the insurance company completes Steps 1 through 6 , ...
- What is EXPENSE CONSTANT? - The Law Dictionary
Definition of EXPENSE CONSTANT: A fixed amount added to the premium amount. The cost of servicing certain policies is more than what premiums alone ...
- EXPENSE CONSTANT
Apr 28, 2010 ... Expense Constant is a charge on all policies and represents the common ... nn addition, management is recommending the expense constant ...