What does Retrospective Premium mean? Read on to discover the definition & meaning of the term Retrospective Premium - to help you better understand the language used in insurance policies.
A retrospective premium is a payment made by a policyholder to an insurance company that is not based on a fixed amount but, rather, on the claims made during a policy period. The policyholder, however, still makes an initial payment to the insurance company prior to paying the retrospective premium.
We hope the you have a better understanding of the meaning of Retrospective Premium.