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From The Glossary »

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Deposit Premium:

Certain policies are written under conditions which provide that the final premium is not determined until the policy has expired. The premium charged at the inception of cover is the deposit premium. The term is also used to refer to the initial premium paid by an applicant for life insurance which is held in suspense by the life company pending its acceptance or rejection of the proposal. The term is also used in reinsurance policies to describe ...
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