An assessment plan is a type of insurance policy for which the insured may be asked to pay an additional premium if the loss exceeds the premiums collected.
It is also called assessable insurance, natural premium insurance, and stipulated premium insurance.
Assessment plans can be used for life insurance and property insurance products. With these kinds of plans, the insured pays the insurer a premium up front. However, if the risk increases the cost of the loss exceeds the amount of the premium paid, the insurer will require an additional premium payment to make up for this.
Synonyms
assessable insurance
Share this Term
Stay informed with Insuranceopedia!
The world of insurance can be complicated. Subscribe to the Insuranceopedia newsletter and stay in the know! Access expert content, industry term definitions and answers to your questions from knowledgeable insurance insiders. Arm yourself with what you need to know to keep your assets and your family safe.
Latest Articles
