Advertisement - Continue reading below

Definition of "proration" [proration]

  • Budgeting the proportional distribution or allocation of parameters, such as noise power and transmission losses, among a number of tandem-connected items, such as equipment, cables, links, or trunks, in order to balance the performance of communications circuits. (noun)
  • In a telephone switching center, the distribution or allocation of equipment or components proportionally among a number of functions, to provide a requisite grade of service. (noun)
  • In the insurance industry, the act of taking money that is currently due from the insurance company and moving it to the patient, knowing that the dollar amount being moved is due from the patient as a deductible, coinsurance, or copayment amount. (noun)

Wiktionary.org : Text is available under the Creative Commons Attribution-ShareAlike License

Use "proration" in a sentence
  • "We have used up our $437 million savings account known as the proration prevention account."
  • "Due to sluggish tax revenues, Riley put General Fund programs under a 12 percent budget cut, known as proration, on April 30."
  • "CBS said it will only accept for cash payment $250 million in notes so some notes will be subject to proration, that is, will be purchased for a combination of cash and stock at a ratio that is determined by how many notes are involved."