basic premium

  • A term used to designate a premium computed solely on the basis of mortality and interest. To this basic premium the element of expense called loading is added to arrive at the gross premium. Synonymous with "net premium" .

    Internal Revenue Service 1

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).