How are tabular discounts treated in Part 1?

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How are tabular discounts treated in Part 1?

Tabular discounts are reductions taken from a table, so you apply that discount to the base amount to get the net amount. In Part 1, the effect of a tabular discount is to lower the gross premium to a net premium by subtracting or multiplying by the tabular factor. For example, if the base premium is 100 and the tabular discount factor corresponds to a 10% reduction, the net premium is 90. The term “net of tabular discount” reflects this after-discount result. The other options would imply adding the discount back or applying non-tabular adjustments, which isn’t how tabular discounts are treated.

Tabular discounts are reductions taken from a table, so you apply that discount to the base amount to get the net amount. In Part 1, the effect of a tabular discount is to lower the gross premium to a net premium by subtracting or multiplying by the tabular factor. For example, if the base premium is 100 and the tabular discount factor corresponds to a 10% reduction, the net premium is 90. The term “net of tabular discount” reflects this after-discount result. The other options would imply adding the discount back or applying non-tabular adjustments, which isn’t how tabular discounts are treated.

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