What does Basic Premium mean? Read on to discover the definition & meaning of the term Basic Premium - to help you better understand the language used in insurance policies.
The underwriting and administrative expense component of premium; amounts required for adjusting of expected losses (see unallocated loss adjustment expenses (ULAE)). It is added to the pure premium to produce the standard premium. In life insurance, the basic premium also includes agent commissions.
We hope the you have a better understanding of the meaning of Basic Premium.