What does Nonsubject Premium mean? Read on to discover the definition & meaning of the term Nonsubject Premium - to help you better understand the language used in insurance policies.
A premium that is not a part of a loss sensitive rating formula. For example, in a retrospective rating plan, the nonsubject premium usually purchases the excess insurance (over the loss limits). The expression "nonsubject" refers to the fact that the premium is a guaranteed cost and not adjustable based on losses.
We hope the you have a better understanding of the meaning of Nonsubject Premium.