Guaranteed Cost Premium

Guaranteed Cost Premium

A premium on an insurance policy in which coverage does not change based on the severity of an insured event.
References in periodicals archive ?
The guaranteed cost premium is the manual, or standard, premium.
This is because premium discounts are used to lower the expense portion of the guaranteed cost premium. Since retro plan operating expenses are covered by the basic premium, operating costs are, in theory, already minimized.
Full browser ?