What does Residual Market Load mean? Read on to discover the definition & meaning of the term Residual Market Load - to help you better understand the language used in insurance policies.
Residual Market Load
A factor insurers apply to workers compensation policies to recover costs assessed them by states for deficits in the residual markets. It is left to the individual insurer to determine how and whether this cost will be passed on to its policyholders. The most common application is as a cost component included in a retrospective rating plan.
More Insurance Terms And Definitions
The Merriam-Webster Dictionary defines insurance as:
b: Coverage by contract whereby one party undertakes to indemnify or guarantee another against loss by a specified contingency or peril.
c: The sum for which something is insured.
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