assessment plan

A plan of insurance whereby the payment of the benefit is in some manner or degree dependent upon the collection of an assessment upon persons holding similar policies. 29 Am J Rev ed Ins § 501. A form of insurance, also called the "natural premium plan," wherein the insurance company limited its assessments or premiums to such a sum as was necessary to cover the actual cost of insurance from one renewal period to another. Westerman v Supreme Lodge, Knights of Pythias, 196 Mo 670, 94 SW 470.

Ballentine's law dictionary. . 1998.

Look at other dictionaries:

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