Benefit Allocation Method
Method of funding a pension plan under which a single premium payment is made to fund a single unit of benefit for one year of recognized service with the employer. For example, if the employee earned an $85 unit of benefit for year X of recognized service to begin at age 60, a single premium deferred annuity would be purchased for that employee's account. Each year this procedure would be repeated as additional single premium deferred annuities would be purchased for each year of recognized service. At the time of retirement, the annuities so purchased would be combined to provide a monthly income benefit for the employee.
Popular Insurance Terms
Insured's income prior to the disability minus the insured's income after the disability. ...
Same as term Fronting: procedure under which the CEDING COMPANY (the primary or fronting company) cedes the risk it has underwritten to its reinsurer with the ceding company retaining none ...
Cancellation of a policy according to its effective date excluding any premium charge. ...
Coverage for a common carrier (the insured) for damage or destruction due to radioactive contamination from commercial radioisotopes of a property in the custody of the insured or that of a ...
In a liability insurance policy, provision for the payment of the insured's expenses as stated in the policy in three areas above the policy limit of liability: legal fees resulting from ...
Means of setting life insurance reserves based on expected mortality rates as reflected in a mortality table. ...
Policy permitting an insured to choose desired coverages. These policies are important for items with relatively low limits of coverage under standard property insurance forms. For example, ...
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Protection of the property of the business that is damaged or destroyed by perils such as fire, smoke, and vandalism; and/or if the actions (or nonactions) of the business' representatives ...
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