What does Guaranteed Cost Insurance mean? Read on to discover the definition & meaning of the term Guaranteed Cost Insurance - to help you better understand the language used in insurance policies.
Guaranteed Cost Insurance
Any insurance for which the insured pays a fixed premium (or a fixed rate that is applied to an exposure base) for the policy term, regardless of the number and amount of losses that occur during the policy term. This contrasts with insurance on a loss sensitive plan, in which the final premium is dependent on the actual losses during the period the plan is in effect.
We hope the you have a better understanding of the meaning of Guaranteed Cost Insurance.