Words, sentences, and paragraphs that describe the benefits and nonbenefits of an insurance contract and its operation.

1. Amount of assets added to the future premiums to be received from insurance policies so that funds are sufficient to pay future claims on policies that are in force. 2. Assets that guarantee that the insurance company has funds sufficient to pay future claims.
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See: level annual premium system.

Document that gives the legally required information of a specific insurance policy that is to be purchased by an applicant.
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UK: A document in durable medium that FSA rules require intermediaries to give retail customers, setting out the main benefits, exclusions and limitations of the policy and other information.

Type of self-management in which a group policyholder maintains the records and is responsible for the insureds covered under the insurance plan. They prepare the premium statements and submit them with the checks to the insurance company for each payment. The insurance company may audit the policyholder’s records. Also called self-administration.

Insurance claims that apply to pooled risks that are excluded from individual case experience rating.

1. In managed care contracts, amount of money retained from capitated payments or discounted fees to facilities and providers and held as an incentive or bonus if they meet the criteria of reducing health care costs by managing utilization. Also known as withhold pool, bonus pool, risk pool, or at-risk contract. 2. To put together premium claims and expenses (risks) for groups into one risk pool to spread the risk. See also community rating.
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The basis of Insurance where by premium contributions are funded and used to pay losses.

Pooled risk cost included in an insurance premium. This amount is obtained by using an individual case experience rating refund formula.

Number or total number of people that live in a certain area, region, or country.