The period of previous service in employment with which a new member of a company pension scheme can be credited.
Tag: RAW
Back-to-back arrangement
A combination of an annuity and whole life policy on the same life whereby a single payment purchases the annuity, the instalments from which pay the whole life premiums. The annuity purchase reduces the purchaser’s estate, but the life policy proceeds paid on death are tax-free and replace the initial single payment. Life premiums payable out of normal income are an exempt transfer and therefore exempt from inheritance tax.
Back-to-back cover
Occurs where the terms and conditions of a primary insurance policy match those of its counterpart reinsurance policy. There is a presumption that facultative reinsurance is back-to-back with the original insurance (Vesta v. Butchers and Others). It is also presumed that proportional reinsurances are back-to-back with the insurance policies, but this is not true of excess of loss treaties. Where by express terms the risk presented to the reinsurer is materially different from that assumed by the reinsured, there is no presumption of back-to-back cover (Gan Insurance and Another v. Tai Ping).
Backdating
A procedure for making the effective date of a policy earlier than the application date. Backdating is often used as an accommodation in Erection/Constructions risks where the risk has already commenced subject to proviso that no loss has occurred or reported for the job erection/construction work completed. Premium too is charged on full rate from the date the cover is commenced from. Otherwise usually the back dating is not at all allowed in Indian insurance market. Also, “Antedating.”
Backdating (Health Insurance/Life Insurance)
When the effective date of a policy is earlier than the application date. This is done so premiums can be calculated for a younger age than the insured’s actual age.
Backloading
System in which there is a higher accrual of pension benefits during a participant’s later years of employment. This is designed to encourage long employment.
Backlog
Queue of insurance claims at the insurance company that have not been processed for payment (adjudicated) to the provider of medical services.
Backup
Duplicate data file; tape, CD-ROM, disk, or external hard disk used to record data; it may be used to complete or redo an operation if the primary equipment fails.