A secondary reserve. If the premium charged on a group of insureds is less than the net premium reserve or modified reserve, this reserve must be shown on the balance sheet.
Insurance Encyclopedia
Deficit
Any excess of debits over credits at the end of a given accounting period.
Deficit and Credit Carry Forward (DCCF)
Some adjustment features of reinsurance contracts allow for both a deficit and credit carry forward. See Deficit Carry Forward and Credit Carry Forward.
Deficit Carry Forward (DCF)
The transfer of deficit or loss from one accounting period, as defined within the reinsurance agreement, to the succeeding accounting period under the existing contract or the replacing contract.
Deficit clause
A clause in a reinsurance or other agreement that specifies that deficits shall be carried forward and offset in arriving at any profit commission due to the reinsured. Deficits may be carried forward to extinction or for a limited period, e.g. three or five years.
***
A condition in a treaty which requires that a deficit at the end of one Underwriting year be carried forward into the account for the next year, when determining the overall profit in a profit commission statement.
Deficit Reduction Act of 1984 (DEFRA84)
Provisions of DEFRA make Medicare Secondary Payer for spouses age 65 through 69 of employed individuals of any age younger than 70 who are covered by an employer group health plan (EGHP).
Deficit Reduction Act of 2005 (DEFRA05 or DRA)
Federal legislation effective January 1, 2007, that controls federal spending on entitlement programs such as Medicare and Medicaid. It transformed compliance programs from voluntary to mandatory, made certain employee handbook content and policies mandatory for recipients of $5 million or more in Medicaid reimbursement, encouraged states to adopt statutes that parallel the federal False Claims Act, and made available additional federal resources to combat fraud and abuse in Medicare and Medicaid programs.
Defined accrued benefits funding method
An accrued benefits valuation in which the actuarial liability for active members is based on the benefits that would arise if the scheme were to discontinue at the valuation date. The standard contribution rate is the rate required to cover both the cost of benefit payments in the ongoing scheme and the accrued benefits in the event of future discontinuance at the end of the control period.
Defined benefit formula
Calculation used to establish periodic payment amounts for each participant on retirement in this pension plan. It is based on the number of years of participation in the plan.
defined benefit pension plan (DBPP)
Retirement plan that pays set monthly benefits to the participant on retirement. The amount is based on the retiree’s age, tenure, and former wages and is calculated by using a certain formula. A DBPP is backed by the Pension Benefit Guaranty Corporation, a government agency that pays worker pension benefits, to set limits, in the event of a plan insolvency.