A plan wherein larger contributions are made for older participants. After compound interest has been added, the smaller contribution made for the younger employee will equal the same retirement benefit as the larger one.
Insurance Encyclopedia
Age/sex factor
Measurement in actuarial underwriting that uses age and sex risk of medical costs of a population relative to another population.
Age/sex rates (ASRs)
In a managed care contract, a structure of capitation payments based on members’ ages and genders. ASRs are used to calculate premiums for the purpose of group billing. Also called table rates.
Age/sex rating
See: age/sex rates (ASRs).
Aged
Under Social Security, an individual 65 years and older whose income and resources are within supplemental security income (SSI) limitations.
Aged enrollee
Individual age 65 or older who is enrolled in the supplemental medical insurance (SMI) program.
Agency
See: insurance company.
Agency agreement
Contract between a principal and an agent that explains the scope of the insurance agent’s authority. See agent.
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The steamship line appoints the steamship agent and defines the specific duties and areas of responsibility of that Agent.
Agency Billing
In an agency billed policy, the insurance agency bills the insured for the policy issued by the Insurance Company or Brokerage. We act as the middleman in this financial transaction, collecting the entire premium (gross premium) from the insured, our client, and passing on the premium reduced by our commission (net premium) to the Insurance or Brokerage Company.
Agency by ratification
When the insurance company accepts the actions of an agent, this ratifies the act, making the company liable for consequences that may occur. For example, the insurance company is liable when they accept a premium on a policy the agent should not have sold.