Minimum Premium Law and Legal Definition
Minimum premium is the smallest acceptable premium for which an insurance company will write a policy. It is the least amount of premium an insurance company may charge under the manual rules for writing a particular policy or bond for a designated period.
The minimum premium may apply in any number of ways such as per location, per type of coverage, or per policy. It is intended to defray the necessary expenses of the insurance transaction and to leave an adequate amount to contribute to the payment of losses.
