Surcharge

{
  "id": "MLC-T-INS-003246",
  "term": "Surcharge",
  "field": "Insurance and risk management",
  "definitions": [
    "An additional charge or premium added to the standard insurance rate. This extra cost is typically imposed due to factors that increase the risk profile of the insured, such as a poor driving record, previous claims, or specific characteristics of the insured property. Surcharges are a common method for insurers to adjust premiums based on individual risk assessments.",
    "(Insurance) When a community is placed on probation by the National Flood Insurance Program (NFIP), each policyholder within the community will be assessed an additional $50.00 on their premium for a one-year period. Beginning on the date probation becomes effective, the surcharge will be assessed on all new and renewal policies issued in the community. The surcharge will always run for a full one-year period even if the community brings its program into compliance and is removed from probation. If the community is still on probation one year and one day after probation first began, another full year of surcharge will be imposed.\n\nNational Flood Insurance Program Requirements\n\n• 59.24 (b) - Probation"
  ],
  "subject": "National Flood Insurance Program",
  "references": [
    "FEMA Glossary"
  ],
  "url": "https://mlchart.com/terminology/insurance/surcharge/"
}