Average Monthly Wage (amw)
Definition of "Average monthly wage (amw)"
Figure used in calculating a worker's primary insurance amount (PIA) to determine Social Security benefits in the following manner:
- calculate the number of years between the worker's twenty-first birthday and the year prior to the worker reaching age 62 (a maximum of 40 years).
- exclude the five lowest years of earnings, thereby selecting the 35 highest years (420 months) of earnings.
- divide the total of the 35 highest years of earnings by 420 months to calculate the Average Monthly Wage.
Popular Insurance Terms
State-sponsored insurance fund that was intended to guarantee deposits at state-chartered savings institutions. A handful of these funds existed in the early 1980s, but after a string of ...
Coverage in which the face amount of a policy remains uniform, neither increasing nor decreasing for as long as the policy is in force. ...
Dividends of a participating life insurance policy deemed by the Internal Revenue Service to be a return of a portion of premiums and thus not subject to taxation. ...
Policy under which the insurer will pay the actual cash value of the property at the time the property was damaged or destroyed provided the loss falls within the limitations of the policy. ...
Death from other than accidental means. ...
Qualified pension or other employee benefit where responsibility rests with an employer rather than an insurer. A trust fund plan, where assets are deposited with and invested by a trustee, ...
Time limit on the deferred ownership of property such that, 21 years after the property owner dies, the deferred ownership of that property terminates. ...
Same as term Deductible: amount of loss that insured pays in a claim; includes the following types: Absolute dollar amount. Amount the insured must pay before the company will pay, up to ...
Method used to determine the policyholder's return on premiums paid into a life insurance policy. This method is illustrated in two ways:.Surrender of Policy Approach calculation of the ...
Have a question or comment?
We're here to help.