An insurance company owned by stockholders rather than by its policyholders.
Insurance Encyclopedia
Capital Stock Insurance Company
A Company having an addition to surplus and reserve funds and capital fund paid in by Stock Holders.
Capital sum
A specified payment for accidental dismemberment or loss of sight.
Capital Sum Insured (CSI)
The amount specified in a Personal Accident Insurance Policy for payment in the event dismemberment and sight losses to the insured or on death of the insured to the nominee.
Capital Transaction
The sale of a capital asset, such as stock, which results in the transaction being taxed as ordinary income and not as a dividend.
Capital unit
A charging device used by unit trust managers. In the early years (e.g. up to three) premiums are allocated to capital units in order to recover expenses.
Capitalised value
The amount used for underwriting in relation to occupational pension schemes policies when a pension provision is to be made for a member’s spouse or other dependants.
Capitated payment
Annual fee paid by the insurance company to the physician, hospital facility, or network that provides health care to a patient.
Capitation
A risk arrangement in a managed care environment in which a health care provider is paid a fixed amount per month for each enrolled member in a health plan regardless of the actual number or nature of services provided to each person. The capitation contract may include a risk sharing arrangement, in which there is an allocation of financial results, both favorable and unfavorable, among the participants to the agreement.
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A method of payment for health services in which a physician or hospital is paid a fixed per capita amount for each person served regardless of the actual number of services provided to each person.
capitation (cap or CAP)
System of payment used by managed care plans in which physicians and hospitals are paid a fixed, per capita amount for each patient enrolled over a stated period of time (month or year), regardless of the type and number of services provided; reimbursement to the hospital on a per member per month (PMPM) basis to cover costs for the members of the plan.