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Over-Redemption

Published: 02-Apr- 2007 | Comments: 0

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Promotion or product managers have percentage estimates of what rebate or refund promotions will actually return. If the promotion is wildly successful, and the actual redemption level exceeds the budget, over redemption insurance provides a limit of liability selected by the insured, above an agreed redemption estimate. This gives the brand or product manager a fixed cost (premium) for the promotion budget and helps protect them from unexpected over-redemptions.

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