Floor

{
  "id": "MLC-T-INS-001553",
  "term": "Floor",
  "field": "Insurance and risk management",
  "definition": "A contractual minimum below which a variable amount cannot fall, such as the guaranteed minimum credited rate on an annuity or the lowest rate allowed in a rating or commission formula. The floor protects whichever party would otherwise receive less, so an annuity floor protects the contract owner while a minimum premium protects the insurer. Its counterpart is a cap, which sets the maximum.",
  "url": "https://mlchart.com/terminology/insurance/floor/"
}