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
One-year coverage that is renewable at the end of each year. Since the group plan is subject to experience rating, the premium rate upon renewal is based on such factors as the loss record ...
Bona fide organization that purchases insurance on a group basis on behalf of members. However, a group cannot be formed for the purpose of purchasing insurance since adverse selection ...
In many property insurance policies, a requirement that the insured carry insurance as a percentage of the total monetary value of the insured property. If this percentage is not carried, ...
Amount, not in excess of $10,000 per year, given to each of an unlimited number of donees free of federal estate tax and gift tax. Each individual can give up to $10,000 to any one donee, ...
Financial incentives credited to the policy to encourage the policyowner to keep the policy in force. The incentives may be utilized by: (1) applying them to the policy cash value after a ...
Canadian retirement plan much like U.S. individual retirement account (IRA). Here, an employee can contribute on a tax deductible basis C $3500 each year as a member of an employer pension ...
Transfer of highly individualized loss exposures that is not based on the usual pooling principles of insurance such as risk identification and classification selection. Rather than setting ...
Rules of conduct and commissions paid to agents. For example, under the rules of conduct agents may be required to submit all of their business to only that agency. The contract also lists ...
Provision for coverage for buildings and personal property within the simplified commercial lines portfolio policy (sclp). The buildings and personal property coverage may be classified in ...
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