Reinsurance of a fixed amount, whether whole or part of the insurer’s line.
Insurance Encyclopedia
Flat line (or first interest) reinsurance
Marine insurance whereby the reinsurer receives all of the cedant’s interest up to a predetermined amount. For example, if an underwriter accepts £100,000 on a vessel and reinsures £50,000 on a first interest basis, any amount ‘closed’ up to £50,000 will be ceded to the reinsurer. If only £80,000 is closed to the underwriter it is his share of the risk that goes down as the reinsurer’s line holds good in the sum of £50,000.
Flat Maternity Benefit
A stipulated benefit in a Hospital Reimbursement policy that is paid for maternity confinement, regardless of the actual cost of the confinement.
Flat maternity benefit (Health Insurance)
A benefit that pays all hospital costs associated with an admission for maternity care, no matter how much the cost of the stay.
Flat percentage of earnings formula
Mathematical method used to determine the retirement benefit for participants in a defined benefit pension plan (DBPP). This type of formula gives each participant a specific percentage of preretirement compensation (e.g., 65%). The amount that is paid using this formula is dependent on how compensation is defined.
Flat premium
A fixed non-adjustable premium. Sometimes used in reinsurance in respect of a portfolio of business that remains relatively unchanged over time or where a minimum premium situation applies.
Flat rate
UK: 1. An all-round rate as distinct from differential rating. The term is sometimes incorrectly used to refer to a fixed premium. 2. A reinsurance premium applicable to the entire premium income derived from the cedant from the business ceded to the reinsurer as distinct from the rate applicable to excess limits.
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In reinsurance, a percentage rate applied to a ceding company’s premium writings for the classes of business reinsured to determine the reinsurance premiums to be paid the reinsurer.
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REINSURANCE: In Reinsurance, a percentage rate applied to a ceding company’s premium writings for the classes of business reinsured to determine the reinsurance premiums to be paid the reinsurer. (ii) A reinsurance premium rate based on the entire premium income received by the ceding company from business ceded to the reinsurer, as distinguished from a rate applicable only to the excess limits premium.
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MEDICAL,USA: Method of payment in which all providers that render the same medical service are paid at the same rate. Also called uniform rate .
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UK: scheme Defined benefit scheme where the ultimate pension benefit depends on how long the member has been in the scheme. The pension accrues at a flat rate for each year regardless of earnings.
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REINSURANCE,REFERENCE: See: Rating
Flat rate (Reinsurance)
The rate on a reinsurance premium. This rate is derived from the premium income the ceding insurer receives from policies ceded to the reinsurer.
Fleet
A group of vehicles, ships or aircraft that are insured together under one policy. Sometimes these are subject to different rating approaches from those that would apply to individual risks.
Fleet for Motor
Motor fleet Insurance concerns the terms and conditions on which Insurance is offered to the owner of a number of cars of commercial vehicles.