This Insurance Glossary of Terms is produced and maintained by the National Alliance Research Academy. 
If you have a comment, suggestion or question please contact us at

Premium Discount

1) A discount allowed on premiums paid in advance of one year based on projected interest to be earned. 2) a discount allowed on certain workers compensation and comprehensive liability policies to allow for the fact that larger premium policies do not require the same percentage of the premium for basic insurer expenses such as policy writing. The discount percentage increases with the size of the premium.

Do you need an answer immediately?

Check out our FAQ page!