Base Premium

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Base Premium

The premium for an insurance policy that is used to calculate the premium for reinsurance. It is also called the subject premium or the underlying premium.
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References in periodicals archive ?
Juan Edgardo "Sonny" Angara on Sunday urged the Bureau of Internal Revenue (BIR) to withdraw its revenue memorandum circular that would subject premiums on health cards to tax.
Risks accepted as "insurable" shall be forthwith assigned, on a rotating basis, to one of the twenty servicing carriers, i.e., companies or groups of companies writing in New Jersey the largest amount of net direct subject premiums during the 1967 calendar year.
It is intended to apply to "Every authorized property/casualty insurer issuing a policy of insurance or contract of reinsurance covering losses resulting from a natural catastrophe to property located in this State, and receiving New York subject premiums..." Each such company would be required to set up a CAT reserve to be used for payment of claims for "qualifying losses", which are defined as losses resulting from loss to property in this State attributable to a "catastrophe" in this State.