[S100]

subject premium

The generic term to describe the rating base for excess of loss reinsurance:

1) the ceding company's premium income as opposed to premium receipts

2) measured net, meaning after cancellations, refunds and premiums paid for reinsurance protecting the cover being rated

3) gross, meaning before deducting any expenses. Also known as gross net premium income (GNPI).

Note: GNPI may be written premiums (GNWPI) or earned premiums (GNEPI).

(See GNWPI--gross net written premium income.)