Business Definition for: assessable insurance
assessable insurance
coverage in which an initial premium is charged, with the stipulation that an additional premium can be charged later if the loss experience of the insurance company warrants it; that is, if losses exceed premium income.
See also
assessment company
Related Terms:
insurance company that has the authority to assess or charge its policyholders for losses that the company is incurring. This company is sometimes called stipulated premium company or assessment association. These companies were relatively common in the 1800s and early 1900s but have since become rare. Most insurance companies cannot assess policyholders for losses.
Copyright © 2000, 1995, 1991, 1987 by Barron's Educational Series, Inc. Reprinted by arrangement with Publisher.