Minimum Premium Overview

Overview of Minimum Premium

There are two types of minimum premiums within TSC. These are the bond minimum premium and the carrier minimum premium. We will consider these separately.

The bond minimum premium sets the lowest possible premium amount for that specific bond configuration for every premium event.

The carrier minimum premium sets the lowest possible premium amount for a bond under that carrier that is configured to have an ‘Annual’ premium calculation. The carrier minimum premium does not apply to ‘Term’ or ‘Continuous’ premium calculations. If the carrier’s settings are set to ‘Annual’ type of premium, this minimum premium will be applied for each year the bond is valid. If the carrier’s settings are set to ‘Term’ or ‘Any’ type of premium, this minimum premium will be applied for each premium event on the bond. Additional Note If an ‘Annual’ bond has both a carrier and bond minimum premium, the lowest possible premium amount for the bond would be set by the higher of the two