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
Tax-exempt income that, for comparative purposes, has been increased by an amount equal to the taxes that would be paid if this income were fully taxable at statutory rates. ...
Central (main) office of an insurance company whose facilities usually include actuarial, claims, investment, legal, underwriting, agency, and marketing departments. ...
Changing state of the economy associated with changes in human wants and desires such that losses or gains occur. Dynamic changes are not insurable. ...
Statutory surplus plus the interest maintenance RESERVE plus the ASSET VALUATION RESERVE. ...
Performance of management functions associated with administering an employee benefit insurance plan, to include actuarial services, booklet and contract plan designing, billing, ...
Single insurance policy for only one kind of property at only one location of an insured. For example, property insurance on a rare piano in the insured's home would cover only that piano, ...
Person covered under an employee benefit insurance plan. ...
Adaptation of a standard insurance contract for special needs. Standard forms do not cover all needs but they can be adapted by an underwriter, broker, or an insurance company at the ...
Single payment or periodic payments that are made to purchase an annuity. ...
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