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 Ability to pay

The ability of a firm to pay a given level of wages or benefit cost increase while remaining profitable. Dependent upon a firm’s ability to be competitive in its market it is a frequent issue in contract negotiating.- www.ifebp.org Glossary

 Absolute assignment

A life insurance policy assignment under which the assignee receives full control over the policy and full rights to its benefits. As a general rule when a life insurance policy is assigned to secure a debt the insured retains all rights in the policy in excess of such debt even though the assignment is absolute in form. Absolute Assignment is also known as assignment and collateral assignment. Note: For Approved Superannuation Funds and Approved Retirement Schemes neither the contributions in the plan nor the payment of annuity benefits can be assigned.- The Insurance Dictionary 3rd Edition

 Absolute beneficiary

A beneficiary designation that cannot be changed by the insured without the consent from the beneficiary. An absolute assignment is also known as irrevocable beneficiary. Note: It is not customary for persons who become Members of an Approved Superannuation Fund or Approved Retirement Schemes to select an irrevocable beneficiary.- The Insurance Dictionary 3rd Edition

 Accident insurance

Replaces a part of earned income that has been lost due to disability caused by accidental injury. May also pay medical expenses caused by accidental injury as well as an indemnity for death or loss of sight or limbs suffered through accident.- The Insurance Dictionary 3rd Edition

 Accidental death

Death as a result of accidental bodily injury; that is injury which is unintended unexpected and unusual. Contrasted with death by accidental means which means that the cause of the accident itself must be accidental (slipping off a ladder etc.). Thus a broken neck as a result of an intended safe dive into a swimming pool is accidental but not accidental means.- The Insurance Dictionary 3rd Edition

 Accidental death and dismemberment benefit

A life insurance policy provision that pays a stated benefit in case of death or the loss of limbs or sign as a result of an accident.- The Insurance Dictionary 3rd Edition

 Accidental death benefit

A payment for loss of life due to an accident that was the direct cause of death. A provision added to a life insurance policy for payment of an additional benefit related to the face amount of the basic policy when death occurs by accidental means as defined in the policy. This is often called double indemnity when the additional benefit equals the face of the policy.- The Insurance Dictionary 3rd Edition

 Accidental death insurance

A form of insurance that provides payment if the death of the insured results from accident. Accidental death insurance is often combined with dismemberment insurance in a form called accidental death and dismemberment. - The Insurance Dictionary 3rd Edition

 Accidental dismemberment

Often defined as ¨the severance of limbs at or above the wrists or ankle joints or the entire irrevocable loss of sight.¨ Loss of use in itself is not usually considered to be dismemberment. - The Insurance Dictionary 3rd Edition

 Accidental means

An unforeseen unexpected unintended cause of an accident. The means that causes the mishap must be accidental for any claim to be payable.- The Insurance Dictionary 3rd Edition

 Accrual Basis

accounting method whereby income and expense items are recognized as they are earned or incurred even though they may not have been received or actually paid in cash. The alternative is Cash Basis accounting.- Dictionary of Finance and Investment Terms

 Accrue

To accumulate. When a right is vested in a person that right is said to accrue to the benefit of that person.- The Insurance Dictionary 3rd Edition

 Accrued benefit

the amount of retirement benefit that has been accumulated on behalf of a participating employee. In the case of a defined benefit plan an employee's accrued benefit would be expressed as the amount he or she could expect to receive at normal retirement age if no future funds were contributed to the plan. In the case of a defined contribution money purchase plan or profit-sharing plan a participant's accrued benefit means the balance presently accrued in his or her individual account.- The Insurance Dictionary 3rd Edition

 Accrued furture service benefit

that portion of determining pension benefits costs under which the actuarial costs are based directly upon benefits accrued to the date of cost determination. Such benefits are determined either by the terms of the plan or by some assumed allocation of total prospective benefits to years of service. When the annual cost of the plan for a given year is calculated the method assumes that a precisely determinable unit of benefit is associated with that year of a participant's credited service.- The Insurance Dictionary 3rd Edition

 Accrued future service benefit

that portion of determining pension benefits costs under which the actuarial costs are based directly upon benefits accrued to the date of cost determination. Such benefits are determined either by the terms of the plan or by some assumed allocation of total prospective benefits to years of service. When the annual cost of the plan for a given year is calculated the method assumes that a precisely determinable unit of benefit is associated with that year of a participant's credited service.- The Insurance Dictionary 3rd Edition

 Accumulation period

In retirement and annuity plans the period when funds re accumulated for later disbursement. This is in contrast to the income period when the accumulated funds are disbursed in the form of an annuity or pension benefits.- The Insurance Dictionary 3rd Edition

 Acid test ratio

Cash Marketable Securities and Accounts Receivable divided by Current Liabilities.

 Act of God

An accident or event resulting from natural causes and beyond human control or influence such as flooding lightening earthquake or hurricane.- The Insurance Dictionary 3rd Edition

 Active Management

A style of investment management that seeks to attain above-average risk-adjusted performance. Active managers buy and sell frequently.- The Pensions (Superannuation Funds and Retirement Schemes) Act 2004 s2

 Active Member

means a Member who makes contributions to an approved Superannuation Fund or approved Retirement Scheme or on whose behalf contributions are made.- The Pensions (Superannuation Funds and Retirement Schemes) Act 2004 s2

 Actively employed

A requirement placed on full-time employees for participation in a retirement or medical plan. It is a protective underwriting measure that presumes that if employees are healthy enough to be on the job they are healthy enough to be covered.- The Pensions (Superannuation Funds and Retirement Schemes) Act 2004 s2

 Activities of daily living (ADL)

Getting out of bed bathing dressing and moving around indoors. A measure for rating an individual's level of disability and for predicting long term care utilization.- The Insurance Dictionary 3rd Edition

 Actuarial assumptions

the assumptions about uncertain future events or experiences used in actuarial calculations such as future claim rates expenses and earnings. (See also: actuarial present value)- The Insurance Dictionary 3rd Edition

 Actuarial cost

A cost derived through the use of actuarial present values.- The Insurance Dictionary 3rd Edition

 Actuarial cost method

In pensions plans a technique for establishing the amount and incidence of normal costs supplemental costs and actuarial liabilities pertaining to benefits and expenses. Actuarial cost methods involve valuation techniques used to determine the proper charges against annual operating techniques and to measure the liabilities of the pension plan at any given date.- The Insurance Dictionary 3rd Edition

 Actuarial equivalent

the mathematical equal of something else. Amount of annuity or pension which can be provided at the same cost as a specified annuity of a different type payable at the same age or as an annuity of the same or a different type payable at a different age.- The Insurance Dictionary 3rd Edition

 Actuarial experience gains or losses

in approved retirement savings plans the effects on actuarially calculated costs of deviations between actual prior experience and the actuarial assumptions used.- The Insurance Dictionary 3rd Edition

 Actuarial liability

under an approved retirement savings plan the excess of the present value of total prospective benefits of the plan (plus administrative expenses if included in the normal cost) over the present value of future normal cost accruals determined by the actuarial cost method in use.- The Insurance Dictionary 3rd Edition

 Actuarial present value

the current worth of an amount payable or receivable in the future where each such amount is discounted at an assumed rate of interest and adjusted for the probability of its payment or receipt.- The Insurance Dictionary 3rd Edition

 Actuarial report

a report containing certain required actuarial information about an approved retirement savings plan and provided by an actuary. The actuarial report must contain information on number of participants contributions received normal costs accrued liabilities current value of assets and liabilities and certificate of the contributions necessary to provide the benefits.- The Insurance Dictionary 3rd Edition