Mid-Term Adjustment
Encyclopedia
In insurance
, mid-term adjustment (MTA), also called a mid-term modification or mid-term change, refers to a change to an insurance policy
prior to the end of the policy period (when coverage is offered).
The change to the policy may cause a change in the premium: an increase is often called AP (for additional premium) whereas a decrease is often called RP (returned premium).
An additional transaction may also be payable to cover e.g. costs for revised insurance documents. Some insurers also use this fee to discourage changes, although few are willing to admit this openly.
A cancellation is often treated as a special-case MTA, where the cover gets decreased to zero. Such transactions may attract special fees too.
Insurance
In law and economics, insurance is a form of risk management primarily used to hedge against the risk of a contingent, uncertain loss. Insurance is defined as the equitable transfer of the risk of a loss, from one entity to another, in exchange for payment. An insurer is a company selling the...
, mid-term adjustment (MTA), also called a mid-term modification or mid-term change, refers to a change to an insurance policy
Policy
A policy is typically described as a principle or rule to guide decisions and achieve rational outcome. The term is not normally used to denote what is actually done, this is normally referred to as either procedure or protocol...
prior to the end of the policy period (when coverage is offered).
The change to the policy may cause a change in the premium: an increase is often called AP (for additional premium) whereas a decrease is often called RP (returned premium).
An additional transaction may also be payable to cover e.g. costs for revised insurance documents. Some insurers also use this fee to discourage changes, although few are willing to admit this openly.
A cancellation is often treated as a special-case MTA, where the cover gets decreased to zero. Such transactions may attract special fees too.