What does Retroactive Rate Reduction mean? Read on to discover the definition & meaning of the term Retroactive Rate Reduction - to help you better understand the language used in insurance policies.
Retroactive Rate Reduction
A retroactive rate reduction is a reduction in a premium rate that is applied to premiums that have already been paid. It often comes in the form of a cash refund or a certain amount of credit that can be applied to future premium payments.
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.
We hope the you have a better understanding of the meaning of Retroactive Rate Reduction. If you are looking for the meanings of other important insurance terms and their definitions, just click on the letter below to find the words & concepts you are looking for: