International Employee Benefit Network
Agreement among insurance companies through which a multinational employer is permitted to purchase employee benefits coverage's for two or more of its overseas subsidiaries under a single master policy. This working arrangement (network) may be composed of several overseas independent insurance companies, may consist of a cooperative agreement between a U.S. insurance company and an overseas insurance company, or may be administered by an insurance company that has several subsidiary companies overseas. Employee benefits provided through these multinational networks include life, health, pensions, disability income, and accidental death. Such a network pools the loss experiences of a particular employer's overseas subsidiaries. If the pooled loss experience is better than that expected through the premium charged, a dividend is paid to the employer. However, if the loss experience is worse than that expected through the premium charged, three courses of action are available: the adverse loss experience is charged to the employer's account with any negative balance shifted to the following loss-experience year; the adverse loss experience is absorbed by the insurance companies in the network, and any negative balance is not shifted to the following loss-experience year; the adverse loss experience is charged to the employer's account with any negative balance shifted to the following loss-experience year, and a contingency fund is established with annual contributions against which future adverse loss experiences can be charged. The pooling effect allows the employer's adverse loss experience in one country to be offset by better than expected loss experience in another country.
Popular Insurance Terms
Individual to whom rights to a benefit are assigned. A life insurance policy is assigned by the collateral borrower (assignor) to the collateral creditor (assignee) as security for a loan. ...
Facilities for senior adults who pay an entrance fee to move into the facility as well as a monthly fee. The adults receive, in return, a place to live and long-term care usually for the ...
Liability insurance that extends beyond the end of the policy period of a liability insurance policy written on a claims-made basis. Liability claims are often made long after the accident ...
Percentage of total assets set aside by an insurance company to provide for unexpected losses. In general, a minimum of a 5% surplus ratio (5 cents in reserve for each $1 of assets) is ...
Right of a certificate holder to convert group life or group health insurance to an individual policy without a physical examination to furnish evidence of insurability. Usually this must ...
Statement regarding an insured's retention of low-severity risks because they are not catastrophic, and can be absorbed without having a dramatic effect on the financial structure of a ...
Several basic property and/or liability policies combined to form a single policy. For example, the homeowners insurance policy is composed of such basic coverages as broad form personal ...
Same as term Binder: temporary insurance contract providing coverage until a permanent policy is issued. In property and casualty insurance, some agents have authority to bind the insurance ...
Presentation of data that excludes the first 5 to 10 years of experience of those who purchase life insurance. A mortality table shows the number of deaths per 1000 of a group of people. ...
Have a question or comment?
We're here to help.