What is Additional Premium(AP) & Return Premium RP in Policy Change(Endorsement)?
Additional Premium:
For example we have GL policy as CBC200000100 with New Business premium as $5,000. User has performed policy change on the same policy by adding location & exposure to that particular location or by increasing existing exposure or adding a premium bearing form. Then obviously premium for that particular policy change will increase. This increase in premium which is positive is called as Additional Premium or AP.
Return Premium:
For example we have GL policy as CBC200000100 with New Business premium as $5,000. User has performed policy change on the same policy by deleting location & exposure of that particular location or by decreasing existing exposure or by removing a premium bearing form. Then obviously premium for that particular policy change will decrease. This decrease in premium which is negative is called as Return Premium or RP.
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