Policy expense allowance

{
  "id": "MLC-T-INS-002587",
  "term": "Policy expense allowance",
  "field": "Insurance and risk management",
  "definition": "An amount included in the premium calculation for certain types of insurance, particularly life insurance, to cover the insurer's administrative and acquisition costs. This allowance accounts for expenses such as underwriting, policy issuance, and agent commissions. It is a component of the overall cost of the policy.",
  "url": "https://mlchart.com/terminology/insurance/policy-expense-allowance/"
}