A tax-deductible savings plan for those who are self-employed, or those whose earnings are below a certain level or whose employers do not offer retirement plans. Others may make limited contributions on a tax-deferred basis. The Roth IRA, a special kind of retirement account created in 1997, may offer greater tax benefits to certain individuals.
A system of reinsurance administration whereby the Ceding Company sends a separate notification to the reinsurer for each risk to be reinsured. The reinsurer then establishes individual records for each cession and calculates the reinsurance premium, inforce, and reserve information for its financial reports. Typically, the reinsurer bills the Ceding Company for the premium due.
The adjustment of a Ceding Company‘s retention and the reinsurance limit by a measure of inflation such as the Consumer Price Index. Under indexation, the Ceding Company’s original retention and the reinsurance limit are multiplied by the result of dividing the index on the settlement date by the index as of the effective date of the reinsurance agreement.
A form of reinsurance under which the risk is passed to the reinsurer who reimburses the Ceding Company for covered losses. The Ceding Company retains its liability to, and its contractual relationship with, the insured.
Provide financial compensation for losses.
Losses occurring within a fixed period, whether or not adjusted or paid during the same period.
Claims paid during a period plus the change in the claim reserve
Losses that are not filed with the insurer or reinsurer until Years after the policy is sold. Some liability claims may be filed long after the event that caused the injury to occur. Asbestos-related diseases, for example, do not show up until decades after the exposure. IBNR also refers to estimates made about claims already … Read more
A Policy provision in which the company agrees not to contest the validity of the contract after it has been in force for a certain period of time, usually two years.
A product purchased with a lump sum, usually at the time retirement begins or afterwards. Payments begin within about a Year. Immediate annuities can be either fixed or variable.
