What does Minimum Premium Plan mean? Read on to discover the definition & meaning of the term Minimum Premium Plan - to help you better understand the language used in insurance policies.
Minimum Premium Plan
an arrangement under which an insurance carrier will, for a fee, handle the administration of claims and insure against large claims for a self-insured group. The employer self-funds a fixed percentage (e.g. 90%) of the estimated monthly claims, and the insurer covers the remainder.
We hope the you have a better understanding of the meaning of Minimum Premium Plan.