Net premium is an accounting term in the insurance industry.
The formula for calculating the net premium is the expected present value (PV) of the insurance policy payments minus the expected PV of future premiums.
Net premium and gross premium are useful in calculating the amount of government taxes an insurance company has to pay.
Some state tax laws allow insurance companies to reduce the gross taxable premium by adding expenses.
Accident insurance covers claims for injuries sustained during the term of the insurance policy, even if they are filed after the cancellation of the policy.
A co-insurance waiver clause refers to language in an insurance policy that sets out conditions under which policyholders must not pay part of a claim.
Performance Based Management (ABM) is a means of analyzing a company’s profitability by looking at every aspect of its business to determine its strengths and weaknesses.
ASO-based self-financing plans are common among large firms because they can spread the risk of costly claims over a large number of employees and dependents.
Comprehensive loss insurance is designed to protect an employer that is self-funding its employee health plan from higher-than-expected claims payments.