net premium

  • The premium, which with other similar premiums, in the aggregate improved at interest, will be exactly enough to pay all claims under certain specific assumptions as to mortality rates and interest yields. It does not provide for any expense of administration, nor for any contingencies not contemplated in the basic mortality and interest assumptions.

    Internal Revenue Service 1

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