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
Study of buying habits of consumers to determine their insurance needs. ...
Section of ocean marine policy making it an obligation of the insured to take specific measures to limit losses to ship or cargo when a mishap occurs. Expenses incurred to limit physical ...
Plan in which participant (employee) utilizes spending accounts to pay for health care costs not subject to reimbursement from a health insurance policy or health care provider. The ...
(land and attachments) and personal (movable effects not attached to land). Both classifications of property give rise to an insurable interest. ...
Outer covering containing an insurance policy; in many instances it lists provisions common to several types of policies. ...
Individual licensed to sell securities to the public. For example, to sell variable annuities and variable life insurance products and mutual funds, an insurance agent is required to pass ...
Plan wherein total withdrawal or income payments from tax deferred savings plans exceed $150,000 in any one year. An excess distribution tax of 15% of the amount greater than $150,000 must ...
Insurance company that restricts its underwriting of risks to one state. ...
Government health care program in several European countries that has been proposed in various forms for the U.S., to be administered by the federal government. Plan A would cover all U.S. ...
Have a question or comment?
We're here to help.