Carpenter Plan ( Spread Loss Cover, Spread Loss Reinsurance)

Definition of "Carpenter plan ( spread loss cover, spread loss reinsurance)"

Thomas  Eason real estate agent

Written by

Thomas Easonelite badge icon

RE/MAX AEROSPACE

Form of excess of loss reinsurance under which each year's reinsurance premium is determined by the amount of the cedent's excess losses for a given period of time, usually three or five years. Upon renewal, the first year's initial rate is based on the total of three or five years of previous experience, a form of retrospective rating. The Carpenter Plan is particularly relevant to economic conditions in the way it handles the factor of inflation.

image of a real estate dictionary page

Have a question or comment?

We're here to help.

*** Your email address will remain confidential.
 

 

Popular Insurance Terms

Partial loss of such significance that the cost of restoring damaged property would exceed its value after restoration. For example, an automobile is so badly damaged by fire that fixing it ...

Time during which an assessment life insurance company has the right to assess policyholders if losses are worse than anticipated in the premium charged. ...

Endorsement to the standard fire policy increasing the insurance protection to an all risks basis. ...

Type of individual retirement account (IRA) allowed by the employee retirement income security act of 1974 (erisa) whereby contributions in the form of premium payments are made on a fixed ...

Independent agent membership group, originally mutual agents but today open to both mutual and stock agents. Association views are presented both nationally and locally on insurance ...

Documentation of physical fitness by an applicant for insurance. Usually this takes the form of a medical examination. Group plans (life, health, disability) require such evidence if the ...

Plan in which funds are withdrawn or income begins before the plan participant reaches age 59/2. An extra 10% early distribution tax on the taxable amount may have to be paid unless any one ...

Specified limit on the dollar amount of coverage for a given loss. ...

Provision in an insurance policy that permits an insured to cancel the policy and recoup the excess of the paid premiums above the customary short rate for the expired time. The clause also ...

Popular Insurance Questions