Payment to the insured by the insurance company after submission of an insurance claim. The insured may assign these benefits directly to the provider. Payment may or may not fully cover the insured’s total costs for the service.
Insurance Encyclopedia
Cash Insurance
The property covered by this Policy is money and/or securities in transit from one place to another. This is a first loss cover and provides for payment of a claim, without bringing in the consideration of under Insurance, pro rata average and partial average. Policy covers loss or damage to money i.e., current coins, bank and currency notes, cheques, postal orders, money orders and current postage and revenue stamps occasioned by robbery or theft or any other fortuitous cause whatsoever whilst in transit. Policy may be extended to cover (a) infidelity of employees (b) cash in safe for a period of 48 or 72 hours on account of unpaid cash which is secured in safe or strong room (c) riot, strike and terrorism damages. Since initial premium is charged on the basis of estimated total cash carryings in a year, it is necessary that when the year ends premiums are adjusted on the basis of actual carryings.
Cash ISA
An ISA that invests in cash only and is therefore also a Mini ISA. Cash is defined widely and can include bank and building society accounts, cash unit trusts, national savings products (excluding national savings certificates and premium bonds) and money market deposits. As with other ISAs, the cash ISA is free of all taxes. See CAT STANDARDS.
Cash Loss
It is a provision common in proportional contracts which facilitate a reinsured to make a claim and receive immediate settlement for a large loss outside of the usual periodic accounting and settlement procedure.
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See: Cash Call.
Cash option
See: Commutation.
cash or deferred arrangement (CODA)
See: Section 401(k) plan.
Cash out of vested benefits
Money taken out of benefits by an employee.
Cash payment option
Life insurance policy that has a dividend option under which the dividends are paid to the policyholder in cash.
Cash premium
Insurance premium paid by the insured and received by the insurance company as distinguished from premium earned.
Cash premium accounting system
Bookkeeping system used for industrial insurance in which the agent informs the home office of the amount collected for each policy. The home office updates the policy records by posting these collections and then prepares new route collection records.