Turnover Rate
Definition of "Turnover rate"
Frequency with which employees resign, are fired, or retire from a company, usually computed as the percentage, of an organization's employees at the beginning of a calendar year. The turnover rate is one of the factors affecting the cost of a pension plan. Employees who leave a company before they have a vested interest in the plan represent a cost saving to plan administrators, because they will not receive benefits when they retire. For this reason, most actuaries make assumptions about the turnover rate of a particular company when calculating how much money must be contributed to a retirement plan to pay future benefits.
Popular Insurance Terms
Unit of the life office management association (LOMA), which prepares and administers educational materials for the Fellow Life Management Institute (FLMI) Program. Upon successful ...
Type of guaranteed insurance contract in which the term is fixed, the rate is fixed, and the contract owner does not participate in the insurance company's earnings. ...
Inland marine policy that covers truck drivers for loss or damage to merchandise they haul. The Interstate Commerce Commission requires this coverage for trucks engaged in interstate ...
Coverage for exposures that exhibit a possibility of financial loss. ...
In insurance, agreement between an insurer and an insured under which the insurer has a legally enforceable obligation to make all benefit payments for which it has received premiums. ...
Insurance policy sold by nonadmitted insurer. ...
process of discovering sources of loss concerning the liability risk faced by individuals and business firms. The first step in risk management is to identify the causes of a loss by ...
Coverage for motorized vehicles, each of which requires separate policies for property damage and liability exposures. Motorized vehicles are not covered under a homeowners insurance policy ...
Location that is different from an insured's home or place of business. Under the standard homeowners insurance policy, the property of the insured is covered off premises; for example, if ...
Have a question or comment?
We're here to help.