Employees who are covered under an employee benefit insurance plan or pension plan with contributions made on their behalf by either their employer, union, or trade or professional association.
Insurance Encyclopedia
Plan Rating
A formal system for establishing individual insured’s premium that recognizes individual risk characteristics.
Plan sponsor
1. Employer or employee organization (union) or both that establishes and maintains an employee benefit plan (e.g., includes government health plans and church health plans). 2. In a 401(k) defined-contribution pension plan, an employer. 3. Under the Health Insurance Portability and Accountability Act (HIPAA), either an employer in case of an employee benefit plan, employee organization in case of a plan maintained by an employee organization, or if two or more employers, the association or committee that maintains the plan.
Plan sponsor (Pensions)
The organization that establishes a retirement plan; for example, an employer.
Plan sponsorship
Group that organizes the group health plan, oversees its facilities, and provides managerial authority.
Plan valuation
See: actuarial valuation.
Plan year
Benefit year that the managed care or health insurance plan is in effect.
Plan year (Pensions)
The 12-month period during which plan records are kept on file, whether a calendar year or fiscal year.
Planned Retention
Retention that results from a conscious decision. Active, not passive retention.
Planned risk assumption
Risk financing whereby the business treats losses as normal operating expenses recovered through the prices charged for their products or services. The risks are not assumed unwittingly. The method is appropriate for low impact high frequency losses.