Interest earned but not yet paid.
Insurance Encyclopedia
Accrued rights
The benefits an occupational pension scheme member has as of right. They include accrued benefits. The rights for an active member can be based on the scenario that he has left service or he could have the right to link benefits to future salary increases. Specific definitions of the term are set out in PSA93 for the purposes of preservation, contracting out and the Disclosure Regulations. PA95 contains a specific definition in relation to scheme amendments. See DISCLOSURE 1.
Accrued rights premium
A type of state scheme premium payable in respect of a member when a defined benefit scheme ceases to be contracted out. In return the state scheme takes over the obligation to provide the member’s guaranteed minimum pension.
Accumulated contributions
Total of a member’s pension scheme contributions plus investment earnings. In a money purchase scheme, the employer’s contributions plus investment earnings are added to give the overall figure.
Accumulated cost of insurance
One factor used when calculating life insurance reserves. The formula is the accumulated cost of insurance equals the net single premium paid at the end of the term of coverage by the surviving insureds to give death benefits on the insureds who died during the term.
Accumulated dividends
Accrued funds payable to policy owners but left with life insurance company to build up and earn interest.
Accumulated funding deficiency
Amount by which a qualified pension plan fails to meet the minimum funding legal standards. A plan with an accumulated funding deficiency is subject to a penalty tax and enforcement provisions. Also called funding deficiency.
Accumulated value
Amount of money invested plus the interest earned.
Accumulation
1. The accumulation risk arises when a large number of individual risks are so situated, e.g. within a given location, that a single occurrence, such as a windstorm, may affect many or all of these risks. The occurrence may be defined in an hours clause. See ACCUMULATION CONTROL. 2. Life insurance term to reflect the increase in value and therefore subsequent benefits available under with profits policies as the life of the policy progresses and investment income accrues.
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US, MEDICAL: 1. Percentage added to insurance benefits given as a reward or incentive to the insured because of continuous renewal of the policy. This may be added as a provision in some health insurance policies. 2. Total number of services used by a patient under an insurance plan that limits costs or office visits.
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The concentration of similar risks in a particular area such that an insured event may result in several losses occurring at the same time.*******Percentage addition to Policy benefits as a reward to the insured for continuous renewal.
Accumulation at interest
Option under which a life insurance policy dividends are retained on deposit with the insurer to accrue interest. Also called accumulation option.