Required by the Pension Scheme Surpluses (Valuation) Regulations 1987 and relates only to the calculation of the actuarial liability. The actuarial liability is based on service up to the valuation date and allows for projected earnings. Actuarial assumptions and methodology are prescribed in the regulations. Except in certain prescribed circumstances the longest period for eliminating any statutory surplus is five years.
Insurance Encyclopedia
Projected costs
Potential insurance claim costs that are expected for a specific group over a time period.
Projected unit method
Accrued benefits method used to calculate the actuarial liability for active members either as at the valuation date or as at the end of the control period, taking account of all types of decrement. The method allows for projected earnings up to the date of assumed retirement, date of leaving or death, as appropriate.
Projection error
Degree of variation between estimated and actual amounts.
Projection factor
Mathematical calculation applied to insurance claim costs so that adjustments can be made for possible increases in the costs from one time period to another.
Prolonged physician services
Extended preservices or postservices given to a patient by a doctor that go beyond the usual time allotted in either inpatient or outpatient settings.
Prolonged services
Services that go beyond the usual time allotted in either inpatient or outpatient settings.
Promissory
A word at the foot of a proposal form. The proposer agrees that the proposal and declaration shall be held to be promissory and shall be the basis of the contract. Although the proposal specifically makes the statements ‘promissory’, they do not necessarily constitute continuing warranties, making the contract voidable if contravened at any time during the policy period. The term emphasises that the proposal answers amount to express conditions (i.e. warranties in insurance parlance) as distinct from mere representations so that the replies are taken as statements of fact and not of intention. The expression may reinforce the fact that the completed proposal form and declaration form the basis of the contract.
Prompt
1. List of items displayed on a CRT from which the typist can choose the function to be performed. Also known as menu. 2. In liability insurance cases, prompt or promptly means payment within 120 days after the earlier of the date a claim is filed with an insurer or a lien is filed against a potential liability settlement. It can also mean the date the service was furnished or, in the case of inpatient hospital services, the date of discharge. 3. In no-fault insurance and workers’ compensation cases, prompt or promptly means payment within 120 days after receiving the insurance claim.
Prompt payment laws
State statutes designed to govern actions of insurers and third-party payers to pay insurance claims in a timely manner; also outlines actions collectors can take against insurance companies if statutes are not followed.