Expense constant

{
  "id": "MLC-T-INS-001402",
  "term": "Expense constant",
  "field": "Insurance and risk management",
  "definition": "A flat charge added to a workers' compensation insurance premium, primarily on smaller policies, to cover the minimum administrative costs of issuing and servicing the policy. This fixed amount applies regardless of the premium size, covering expenses like policy issuance, data entry, and basic accounting that do not vary with the employer's payroll or risk level. The specific dollar amount of the expense constant is set by state rating bureaus or regulators.",
  "subject": "Workers Compensation",
  "url": "https://mlchart.com/terminology/insurance/expense-constant/"
}