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.
We hope the you have a better understanding of the meaning of Residual Market Load.