Adjustable Policy Law and Legal Definition
Adjustable policy is an insurance policy applicable in situations where it is unable to calculate the actual extent of the risk in advance. Usually, an insurance premium is based on estimate of the size of the risk. In certain cases such as goods in transit, it would be hard to estimate the size of the risk with accuracy. Therefore the client would be charged a provisional premium and this premium would be adjusted at the end of the insurance period, after reviewing the actual risk that was carried by the insurance company.