Stipulated Insurance

Business, Legal & Accounting Glossary

Definition: Stipulated Insurance



Full Definition of Stipulated Insurance


An insurance policy that allows the insurance company to assess an amount on the insured, above the standard premium payments, if the company experiences losses worse than had been calculated into the standard premium. This is a way for both the insurance company and the policy-holder to gamble on the risk, mutually betting on low losses. Also called an assessment, mutual assessment or mutual life insurance. Example: A shipping company buys an insurance policy to protect against loss or damage to its cargo. During the first few years, the company never pays more than the low fixed premiums because it suffers no losses. Later, however, the company’s luck turns and one of its shipping liners sinks in the Bermuda Triangle. In response to the huge losses, the insurance company assess penalty payments and higher premiums.


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Stipulated Insurance. PayrollHeaven.com. Payroll & Accounting Heaven Ltd. https://payrollheaven.com/define/stipulated-insurance/ (accessed: October 20, 2020).
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Stipulated Insurance. PayrollHeaven.com. Retrieved October 20, 2020, from PayrollHeaven.com website: https://payrollheaven.com/define/stipulated-insurance/

Definition Sources


Definitions for Stipulated Insurance are sourced/syndicated and enhanced from:

  • A Dictionary of Economics (Oxford Quick Reference)
  • Oxford Dictionary Of Accounting
  • Oxford Dictionary Of Business & Management

This glossary post was last updated: 23rd April, 2020 | 4 Views.