Carpenter Plan ( Spread Loss Cover, Spread Loss Reinsurance)
Definition of "Carpenter plan ( spread loss cover, spread loss reinsurance)"
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.
Popular Insurance Terms
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Model state statute that governs terms for surrender of individual deferred annuities and cash value life insurance. This model, adopted by most states in the late 1970s and early 1980s, ...
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Coverage for paintings, pictures, etchings, tapestries, art glass windows, antique furniture, coin collections, and stamp collections owned by individuals and businesses. These works are ...
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