adjusted premium

  • A life insurance premium defined mathematically by the insurance laws of most states, and from which minimum cash surrender values are computed. The adjusted premium provides for payment of death claims in accordance with the statutory standards of interest and assumed mortality, plus an allowance for certain first-year expenses stated in the law.

    Internal Revenue Service 1
    See also gross premium

1Internal Revenue Service, Internal Revenue Manual 4.42.6 Glossary, http://­www.irs.gov/­irm/­part4/­irm_04-042-006.html (last accessed Dec. 22, 2009).