In an employee’s retirement plan, cash or deferred dollar amount put into an employee’s Section 401(k) plan by the employer. Contributions are made using before-tax dollars that are obtained through a voluntary reduction of the employee’s salary. The employee pays taxes when the funds are paid out at retirement time, making it a tax-deferred system. Also called elective deferrals .
Insurance Encyclopedia
Elective deferral plan (Pensions)
A plan wherein policyholders are able to defer present payments into a retirement plan.
Elective deferrals
See: elective contributions .
Elective surgery
Surgical procedure that may be scheduled in advance, is not an emergency, and is discretionary on the part of the physician and patient. Generally, elective surgery is required and may be major surgery.
Electric Motors and Equipment Insurance Policy
Type of business Insurance coverage. Also known as Machinery Breakdown Insurance. See Also: “Engineering Insurance, Machinery Breakdown.”
Electrical breakdown exclusion
See: mechanical breakdown exclusion.
Electrical clause
A fire insurance policy clause excluding loss or damage to dynamos, motors or other electrical apparatus, caused by its own over running, self-heating, etc. These losses are incidental to the running of electrical apparatus but consequential fire damage to other property is covered.
Electrical Exemption Clauses (Electrical or Electrical Apparatus Exemption Clause)
Several different paragraphs in Fire Insurance policies limiting coverage to electrical machinery damage by electric current. A clause attached to a Fire Insurance contract stating that, in the event of electrical injury or disturbance to electrical appliances, including wiring caused by artificially generated electric currents, the Insurer shall be liable only if Fire ensues and then for the damage by Fire only.
Electrical or electrical apparatus exemption clause (Property Insurance)
A clause that provides that damage to appliances stemming from electrical currents is only covered if a fire begins.
Electrical plant and mechanical plant
Machinery, plant, motors, accessories and connections thereto powered electrically or mechanically and insurable by engineering insurers against: sudden and unforeseen damage; breakdown; explosion and collapse; accidental damage; and damage to surrounding property. Third party risks are generally covered under public liability insurance. Insurance on plant is usually coupled with in-service inspections, many of which are required by statute.