(1) See the third definition of Net Premium for the definition applicable to participating Life Insurance policies. (2) In a non-participating policy, the book rate.
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Lien Plan
(1) A plan for issuing coverage on substandard risks under which a standard premium is paid, but less than the full face amount of the policy is payable if death occurs within a certain period of years. It is rarely used and is even illegal in some states. (2) A plan under which an impairment of the insurer’s assets if offset by pro rata liens against policies to be deducted from the face amount when paid as a claim.