What does Long Duration Contracts mean? Read on to discover the definition & meaning of the term Long Duration Contracts - to help you better understand the language used in insurance policies.
Long Duration Contracts
contracts, excluding financial guaranty contracts, mortgage guaranty contracts and surety contracts, that fulfill both of the following conditions: (1) the contract term is greater than or equal to thirteen months and (2) the insurer can neither cancel nor increase the premium during the contract term.
We hope the you have a better understanding of the meaning of Long Duration Contracts.