Funding plan in which taxes are scheduled to produce as much income as required to pay current benefits, with trust fund assets built up only to the extent needed to prevent exhaustion of the fund by random fluctuations.
Insurance Encyclopedia
Pay-as-you-go funding
Payment that postpones the cost of coverage for a retired employee until after the person is actually retired.
Pay-as-you-go plan
See: current disbursement.
Pay-at-the-pump
A device for making sure all motorists are insured the theory being that premiums for basic liability coverage could be collected through taxes at the gasoline pump in a relatively painless manner, thus eliminating the uninsured motorist.
pay-for-performance (P4P)
Name of a Medicare reimbursement model.
Payable
Unpaid, but not necessarily overdue, financial account or bill.
Payback
A method of reinsurance rating under which the price is based on how frequently a limits loss might occur over a period of time based on historical or projection indications. Thus, if the indicated or projected loss would occur only once in five years, the price would be set (without regard to expenses and profit margins) to be equal to the limit divided by five and the contract would thus be said to have a “five year payback.” Inverse calculation with Rate on Line.
Payback period
The length of time it takes for an investment to make the original amount invested. For example, if a $500 investment generates a return of $100 every year, the payback period of that investment is five years.
Payee
MEDICAL,USA: 1. Individual to whom benefits are payable under a supplementary insurance contract. 2. Individual named on a draft or check as the receiver of the amount shown; also known as bearer.
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A person receiving money.
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The person receiving money.
Payee Clause
A clause in an Insurance contract providing for payment of loss to a person or class of persons.