In health insurance, the fraction of the premium amount which goes toward administrative costs. In reinsurance, this term refers to the amount of the insurance kept by the ceding company instead of being re-insured.
Insurance Encyclopedia
Retention bond
Given by an insurer on behalf of a contractor in exchange for the release of retention monies from the employer or main contractor. The bond is equal to the monies released and is circa 2.5 per cent of the construction contract value. See PERFORMANCE BONDS.
Retention Bonds
See: “Bond, Bid”
Retention charge
Dollar amount of the premium to cover expenses (not claims) and to allow the insurance company to make a profit for a group insurance contract.
Retention limit
Largest amount of insurance that an insurance company will write at its risk on an individual without ceding part of the risk to a reinsurer.
Retention of risk
One of the major risk management techniques. This is done by assuming responsibility for the total amount of the risk instead of insuring against it.
***
Assuming all or part of a risk instead of purchasing insurance or otherwise transferring the risk. One of the four major risk management technique.
retired lives reserve (RLR)
Fund established by an employer to provide a retired employee with life insurance. The employer’s premium payments are tax deductible. If the employee ends service before retirement, funds remain in the employee’s account and are used to fund benefits of the remaining employees.
Retiree
Individual who has retired and is no longer at work or in a business.
retirees, family members, and survivors (RFMS)
Spouse and dependents of a retired member or veteran of the U.S. government military services (e.g., Army, Navy, Air Force, Marines, Coast Guard). This phrase is used more frequently in the TRICARE and CHAMPVA health care programs.
Retirement age
Age when an employee ceases work; age when pension benefits begin to be paid. The Age Discrimination in Employment Act states that minimum mandatory retirement is 70 years of age.