A product that is no longer in production. In products liability insurance such products need to be identified and brought within the business description to ensure that the ‘run-off’ risk is covered as the policy is ‘losses-occurring’. The time of damage triggers the right to an indemnity not the date of manufacture or supply.
Insurance Encyclopedia
Discount
1. Reduction of a normal charge based on a specific amount of money or a percentage of the charge. 2. In a managed care plan’s contract with a provider, the discount is the percentage deducted during settlement of the claim from the allowed amount.
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Discount is a reduction in premium in respect of some favorable features of the risk, e.g., discount for Fire extinguishing appliances or for freedom from claims, and where customary, as in marine Insurance, originating from a reward for prompt payment of premium.
Discount (Pensions)
The difference between the amount that will be due at a specific date in the future and the present value, calculated at a specific rate of interest.
Discount drug list
Record of certain drugs and their proper dosages that shows the drugs the pharmaceutical company will sell at a reduced cost.
discounted fee-for-service (discounted FFS)
Type of fee-for-service payment in which a managed care plan negotiates a discounted fee with a provider that is less than the usual or customary fee. It may be a fixed amount per service or a percentage discount. Physicians may be attracted to such negotiations because they represent a way to increase the volume of patients seen or reduce the chance of losing volume. Also called contracted discount rate .
Discounted Reserve
The present value calculated select interest rates and payout patterns of the payment of outstanding losses, LAE or ALAE; distinguished from full value reserve.
Discounted value table
A table that gives the value of dollars payable at certain times in the future. The table shows values at present and discounted, for different interest rates.
Discounting
a term used to describe adjustments made to general business reserves so that they reflect the present value of the future contingent liabilities; such an adjustment may be made for accounting purposes, and may in certain circumstances be required for tax purposes where the reserves are initially calculated by reference to the likely ultimate cost of settlement after taking into account monetary inflation, and also the tendency for court awards for damages to increase by more than the rate of inflation; the adjustment is usually made by discounting the ultimate cost of settlement by reference to a suitable rate of interest, thus reflecting the time value of money.
Discounting of reserves
See: TIME AND DISTANCE POLICIES.
Discounts (HIR 2016) for Health Insurance
Discounts for early buyers and health conscious customers. Under new rules if someone buys health insurance at the early age, renewed regularly or practice preventive or wellness habits, then you will get some discounts in premium or discounts and/or benefits on diagnostic or pharmaceuticals or consultation services of providers in the network are permitted.