What does Expense Constant mean? Read on to discover the definition & meaning of the term Expense Constant - to help you better understand the language used in insurance policies.
A fixed, flat expense charge applied to every workers compensation policy in states using advisory rates. The charge applies in addition to the premium developed for that policy and recognizes that some of the administrative costs associated with writing a workers compensation policy do not vary with the amount of premium and should, therefore, not be included in the factors that are used to develop rates.
We hope the you have a better understanding of the meaning of Expense Constant.