The rate of exchange that determines the amount of pension that needs to be sacrificed to provide a given lump sum benefit at retirement. The commutation factor indicates how much cash is available for each £1 of pension exchanged. Scheme rules specify the commutation factor that will apply either to all members or specifically to individuals. The commutation factor is a ratio, e.g. 12:1 mean a pension of £883 per annum can be exchanged for a lump sum of £10,000.
Tag: RAW
Commutation right (Life Insurance)
The beneficiary’s right to exchange a series of payments for a lump sum.
Commutation Rights
In life insurance, the right of the beneficiary to receive in a lump sum the cash value of the remaining payments under an insurance option chosen by the insured.
CoModCo
A combination of coinsurance and modified coinsurance under which some part of the reserves, for example, deficiency reserves, are a liability of the reinsurer (“co” portion) while some are returned to the cedant (“modco” portion).
Comorbid condition (CC)
Medical condition that coexists with the primary cause for hospitalization and affects the patient’s treatment and length of stay.
Comorbidity
Underlying condition or other condition that exists along with the condition for which the patient is receiving treatment. Used in diagnostic-related group (DRG) reimbursement. Sometimes referred to as comorbidity condition or concurrent condition.
Comorbidity condition
See: comorbidity and concurrent condition.
Comp
See: compensation (comp).
Companies collective signing agreement (CCSA)
A single market agreement used in the non-marine market. The agreement authorises the leading CCSA company to sign a collective policy on behalf of all other CCSA companies on risk. The agreement indemnifies the signatory company respect of any liability that attaches that would not have attached had the policy been individually signed by all compain nies.
Company
Agency chartered under state laws that underwrites, administers, and sells many types of insurance plans (e.g., fire and marine, life, casualty, health, liability). For those it insures, it agrees to pay all legitimate claims that may arise under the policy in exchange for a monthly or annual premium. Also called agency or insurance agency, indirect payer, insurer , or payer . See also insurance carrier, fiscal agent , fiscal intermediary (FI) , or agency .