Cash paid, draft redeemed or drawn, for settlement of a group insurance claim.
Insurance Encyclopedia
Cash Crop Plantation Insurance
Plantations usually financed by banks and supervised by an approved agency may be covered. The Policy covers Fire and forest Fire, riot, strike, malicious damage, storm, tempest, flood, cyclone, hurricane and allied perils, impact damage. The cover can also be extended to cover diseases, insects and pests to the limited extent only not exceeding 5%.
Cash deductible
See: deductible.
Cash equivalent transfer value (CETV)
The cash equivalent of accrued benefits under a defined benefit scheme that may be used as a transfer payment to another approved pension arrangement or to purchase a section 32 policy. The minimum funding requirement applies to CETV.
Cash flow
In a medical practice, the amount of actual cash generated and available for use by the medical practice within a given period of time.
Cash Flow Plan
Generic term for any loss financing plan designed to minimize an organization’s cash overflows for Insurance. Refer: “Compensating balance plan” and “Paid-loss retro plan.” two of the most widely used cash flow plans.
Cash flow plans
A method of paying premiums under which the insured keeps a portion of the premium and pays the premium out over a given time frame.
Cash flow underwriting
Underwriting approach emphasising rapid premium growth rather than selective, profitable underwriting. The insurer expects that the investment income from the enhanced revenue will more than offset any reasonable underwriting loss. An insurer who anticipates a rise in shortterm interest rates may adopt this approach.
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A method of maximizing interest earned on premiums through rating and premium collection.
Cash fund
Funds invested by their managers, e.g. unit trust managers, exclusively in short term deposits with banks and local authorities. The interest secured is usually better than the amount that could have been achieved by individual investors.
Cash in Advance
(C.I.A.) : Payment of goods in which the price is paid in full before shipment is made. This method is usually used only for small purchases or when the goods are built to order.