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Foundations of Casualty Actuarial Science
Payment required for insurance; application of the rate(s) to the
individual exposures to be covered by an insurance policy.
Premium Capacity
Refers to the aggregate premium volume an insurer can write.
Profit And Contingencies
Provisions made for expenses and profit.
Prospective Rating Plan
The formula in an insurance contract for determining premium
for a specified period on the basis, in whole or in part, of the loss
experience of a prior period.
Pure Premium
The portion of the premium that is allocated to enable the
insurance company to pay losses, but in which no loading has
been added for commission, taxes or other expenses; average
loss per unit of exposure; the product of frequency per unit
of exposure and severity; the average loss per unit of
exposure.
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