{{distinguish, Mid-year adjustment
In
insurance
Insurance is a means of protection from financial loss in which, in exchange for a fee, a party agrees to compensate another party in the event of a certain loss, damage, or injury. It is a form of risk management, primarily used to hedge ...
, mid-term adjustment (MTA), also called a mid-term modification or mid-term change, refers to a change to an insurance
policy
Policy is a deliberate system of guidelines to guide decisions and achieve rational outcomes. A policy is a statement of intent and is implemented as a procedure or protocol. Policies are generally adopted by a governance body within an organ ...
prior to the end of the policy period (when coverage is offered).
The change to the policy may cause a change in the
premium
Premium may refer to:
Marketing
* Premium (marketing), a promotional item that can be received for a small fee when redeeming proofs of purchase that come with or on retail products
* Premium segment, high-price brands or services in marketing, ...
: 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