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English definition of “commutation”

commutation

noun [C or U]     /ˌkɒmjʊˈteɪʃən/
FINANCE, INSURANCE the act of changing a financial agreement so that someone receives the whole of an amount of money immediately instead of receiving it at a later time in a series of smaller payments: Unless the policyholders are in need of short-term cash, there is no benefit to them in these commutations.
LAW the act of replacing a punishment with a less severe one: The committee also examined factors a governor might consider for commutation of death sentences. Another 12 commutation requests were denied.
the act of travelling regularly between your home and the place where you work: They have developed an electric car for safe and sustainable commutation on city roads. Join our Mail & Ride program to receive your monthly commutation ticket automatically by mail. → Compare commute
(Definition of commutation noun from the Cambridge Business English Dictionary © Cambridge University Press)
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