The amount of premium (usually for an Excess of Loss Reinsurance contract) which the Ceding Company pays to the reinsurer on a periodic basis during the term of the contract. This amount is generally determined as a percentage of the estimated amount of premium which the contract will produce based on the rate and estimated Subject Premium. It is often … Read more
The conversion of insurance companies from mutual companies owned by their policyholders into publicly-traded stock companies.
Customer assets that are held in a checking account. Funds can be readily withdrawn by check, “on demand.”
An employee benefit plan under which the employer sets up benefit accounts and contributions are made to it by the employer and by the employee. The employer usually matches the employee’s contribution up to a stated limit.
A retirement plan under which pension benefits are fixed in advance by a formula based generally on Years of service to the company multiplied by a specific percentage of wages, usually average earnings over that period or highest average earnings over the final Years with the company.
Regulatory reserves held in excess of regulatory Benefit Reserves. Generally created when the gross premium is less than the premium assumed by the regulatory reserving standard. Not deductible for US Tax purposes.
An Annuity contract that is purchased either with a single tax-deferred premium or with periodic tax-deferred premiums over time. Payments begin at a predetermined point in time, such as retirement.
Costs directly associated with acquiring new business, which are to be recognized over the lifetime of the business. There are typically two basic types of costs: commission or brokerage costs and first year policy cost. These costs are deferred by capitalizing them as an asset and amortizing them in relationship to premium or profits depending … Read more
The amount of loss paid by the policyholder. Either a specified dollar amount, a percentage of the claim amount, or a specified amount of time that must elapse before benefits are paid. The bigger the deductible, the lower the premium charged for the same coverage.
An Endorsement to a reinsurance agreement that requires the reinsurer, in the event of the Ceding Company‘s insolvency, to pay any loss covered under the reinsurance agreement directly to the insured or third-party beneficiary.
