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
Life insurance company that sells life insurance and annuities to the faculty and staff of colleges and universities. Its TIAA-CREF Tax-Sheltered Annuity (TSA) uses a traditional fixed ...
Plan in which a public employer (such as a university, state, county, or municipality) sponsors a retirement savings program, named for the section of the Internal Revenue Code that permits ...
Provision in many property insurance policies that excludes coverage for floods and backup from sewers or drains and underground water. Because floods and hurricanes are generally confined ...
Factors influencing the amount of life insurance to purchase, such as marketable skills of spouse, age of children, savings, investments, number of future working years' expectancy, amount ...
Professional designation earned after the successful completion of three national examinations given by the insurance institute of America (IIA). Covers such areas of expertise as ...
Same as term Extended Coverage Endorsement: added to an insurance policy or a clause found in an insurance policy that will provide additional coverage for risks to be insured other than ...
Legislation passed in 1988 by the U.S. Congress to facilitate movement of checks through the collection system. As the result of this Act, the Federal Reserve has established rules for the ...
Any of a number of types of surety bonds that the law requires of government contractors, licensed businesses, litigants, fiduciaries, government officials, and others whose performance of ...
Size of the losses used as a factor in calculating premium rates. For example, the U.S. Bureau of Labor Statistics studies the number of days lost by injured employees per million ...
Have a question or comment?
We're here to help.