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
Investment-oriented whole life insurance policy that provides a return linked to an underlying portfolio of securities. The portfolio typically is a group of mutual funds established by the ...
Insurance company incorporated according to the laws of the state in which a risk is located and the policy issued. The insurance company is domiciled in that state. ...
Cooperative organization among insurers that rates and prepares new policy forms according to guidelines and regulations of the state insurance department. Loss experience, collected ...
Type of insurance providing all risks coverage for personal property of the crew and passengers aboard a ship. Marine cargo insurance does not cover personal property of the crew and ...
Right of a policyholder in life insurance with cash value to elect a smaller, fully paid-up policy, without any further premiums to pay. The amount of the paid-up policy is determined by ...
Specifications dealing with exclusions, policy requirements, cancellations and related matters. Perils Most policies exclude enemy attack, invasions, insurrection, rebellion, revolution, ...
Coverage for the federal government in the event of loss due to dishonest acts of federal government employees. ...
Protection required under the Motor Carrier Act of 1935. The policy covers the motor truck carrier if it is legally liable for the damage, destruction, or other loss of the customer's ...
Method of transferring pure risks that is perhaps the seed of the modern day insurance policy. Ancient Greece held to the concept that a loan on a ship was canceled if the ship failed to ...
Have a question or comment?
We're here to help.