direct premium

direct premium definition - business

direct premium

  1. A free item or other incentive offered to a consumer at the time of a purchase. For example, a consumer who purchases a particular brand of perfume may be offered a free tote bag.
  2. The premium collected by an insurance company prior to any premiums paid to a reinsurance company.

The American Heritage® Dictionary of Business Terms Copyright © 2009 by Houghton Mifflin Harcourt Publishing Company. Published by Houghton Mifflin Harcourt Publishing Company. All rights reserved.

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