Burning Cost Law and Legal Definition
Burning cost refers to the estimated cost of claims in the approaching period of insurance, calculated from previous years’ experience adjusted for changes in the numbers insured, the nature of cover and medical inflation. This term is frequently used in spread loss property reinsurance for expressing the ratio of incurred losses within a specified amount in excess of the yielding company’s retention to its gross premiums over a stipulated number of years.
Legal Definition list
Related Legal Terms
- Above the Line Costs (Entertainment Law)
- Absorption Costing
- Accelerated Cost Recovery System
- Acquisition Cost of an Item of Purchased Equipment
- Acquisition Cost of Equipment [Education]
- Activity-Based Costing
- Actuarial Cost Assumptions
- Actuarial Cost Method
- Administrative Cost of Issuing a Loan Guarantee
- Administrative Settlement Costs
