One who takes possession of the assets of a decedent, pays the expenses of administration and claims of creditors, and disposes of the balance of an estate in accordance with the decedent’s will.
Insurance Encyclopedia
Estate plan
A will and other provisions for the distribution of one’s estate upon death or disability. See Estate.
Estate planning
Program or plan to prepare an individual’s estate on death. It is done to provide and conserve funds and assets that are to be given to heirs after death of the individual. Estate planning involves accountants, attorneys, trust officers of banks, insurance agents, and an estate administrator to carry out the wishes of the deceased.
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A process under which plans are made to accumulate and manage property during one’s lifetime and to dispose of it at one’s death.
Estate planning (Estate)
The administration of an estate, done to minimize estate shrinkage due to taxation.
Estate planning department
See: advanced underwriting department .
Estate recovery
Under the Medicaid program, recovery of financial assistance from certain deceased Medicaid recipients’ estates up to the amount spent by the state for all Medicaid services (e.g., nursing facilities, intermediate care facilities for mentally retarded, home and community-based services, hospitals, prescription drug services). Federal law mandates that each state have an estate recovery program.
Estate tax (Estate)
A tax based on the worth of the deceased’s estate, which is due to the federal government.
Estimated future liability
In the Lloyd’s annual solvency test on an open year of account, an estimate has to be made of the provision required by a syndicate to cover claims and other adjustments likely to arise from risks accepted during that year. The basis for calculation is laid down in the instructions for the guidance for auditors.
estimated length of stay (ELOS)
Average number of days of hospitalization required for a specific illness or procedure. These data are based on previous histories of patients who have been hospitalized for the same condition or procedure.
Estimated maximum loss (EML)
UK: an estimate of the monetary loss which could be sustained by insurers on a single risk as a result of a single fire or explosion considered by the underwriter to be within the realms of possibility (an expression used only in fire, explosion and material damage policies).
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An expression used in Fire, explosion and material damage policies only. An estimate of the monetary loss which could be sustained by insurers on a single risk as a result of a single fire or explosion considered by the underwriter to be within the realms of possibility.
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UK: Estimate of the maximum probable loss developing from an insured peril. It takes account of factors that will lessen the risk, e.g. fire protection, and factors that will increase the risk, e.g. combustible materials. It ignores coincidences such as all protective devices failing simultaneously with serious human error and other untoward circumstances. Insurers use EML (also called probable maximum loss) when fixing their retention on individual risks.