What is an extra premium?
Extra premium is a type of additional fee or fee that is added if a regular or standard premium fee is not enough to cover all events or possibilities associated with the situation. This term is most often used in situations where insurance is issued to provide short or long -term protection against certain events. If the insurance provider considers a certain type of event beyond the scope of coverage included in the basic premium fee, further or special premiums will be considered as a means of expanding this special coverage to the insured party.
Application Another bonus helps to serve two purposes. For an individual or entity looking for further protection, it offers an offer of bonus to obtain coverage beyond the basic protection included in the insurance contract. At the same time, the application of the next bonus helps to protect the interests of the insurer, who would cost to incur additional costs if these other or other events actually took place. By accepting the surchargeThe insurer helps maintain the level of risk in reason, allowing to adapt to the client.
Depending on the principles and procedures of the insurance provider, further bonuses may be assessed and paid in several different ways. One approach is the selection menu of what is called a flat extra premium. With this strategy, the insured party pays an extra flat -rate amount at the beginning of the period of coverage, then make standard premium payments according to the agreed schedule. The alternative approach is that the total amount of extra premium is divided between a number of standard payments and to create additional costs caused by each of these payments. With both solutions, further premiums are again DUE at the beginning of the new period of coverage, for example at the annual recovery date.
In some cases, further bonuses may be removed later. This usually occurs when the insurance provider believes that the eventThose applied to this surcharge are no longer relevant and do not pose any real risk. The bonus may also be removed if the insured party indicates the insurance provider that the cover of these other actions is no longer desirable. At this point, the conditions of the political agreement between the two parties will be changed to reflect new circumstances.