What Does Sliding Scale Commission Mean?

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What does Sliding Scale Commission mean? Read on to discover the definition & meaning of the term Sliding Scale Commission - to help you better understand the language used in insurance policies.

Sliding Scale Commission

Sliding Scale Commission

A ceding commission that varies inversely with the loss ratio under the reinsurance agreement. The scales are not always one to one: for example, as the loss ratio decreases by 1 percent, the ceding commission might only increase by 50 basis points.

We hope the you have a better understanding of the meaning of Sliding Scale Commission.

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