Minimum premium (MP)

{
  "id": "MLC-T-INS-002196",
  "term": "Minimum premium (MP)",
  "field": "Insurance and risk management",
  "definition": "The smallest amount of premium an insurer will charge for a particular policy, regardless of the calculated premium based on exposure units. This amount is set to cover the insurer's administrative costs, such as underwriting, policy issuance, and claims handling, even for very small risks. If the standard premium calculation results in a figure below the minimum premium, the insured still pays the minimum amount.",
  "abbreviation": "MP",
  "url": "https://mlchart.com/terminology/insurance/minimum-premium-mp/"
}