Another method for establishing a conversion factor under the Volume Performance Standard system. It brings actual spending in line with targeting spending and also recovers any surpluses or shortfalls in spending from 2 years before Medicare updates in the fee schedule are made.
Insurance Encyclopedia
Cumulative degree days
The total of degree days occurring over the period of a weather derivative. The cumulative figure is multiplied by the amount of the tick to give the payout for the period, subject to the strike being breached but not exceeding any cap.
Cumulative injury
In workers’ compensation cases, that occurring as repetitive mentally or physically traumatic activities extending over a period of time, the combined effect of which causes any disability the need for medical treatment.
Cumulative Liability
When one bond is cancelled and another issued to take its place and the first bond has a discovery period, the surety Company is exposed to the possibility of loss equal to the aggregate sum of the two bonds.
Cumulative liability (Reinsurance)
The total liability a reinsurer has accumulated from different policies taken on from different ceding companies that were all affected by the same disaster.
Cumulative losses
See: UNREPAIRED DAMAGE.
Cumulative Probabilities
The sum of probabilities.
Cumulative Trauma
Any physical or psychological disability that results from the combined effects of repeated injuries or illnesses. Although each injury or illness may be minor at the time it occurs, the cumulative effect over time can lead to claims for physical or psychological disabilities.