The cash equivalent of accrued benefits under a defined benefit scheme that may be used as a transfer payment to another approved pension arrangement or to purchase a section 32 policy. The minimum funding requirement applies to CETV.
Tag: RAW
Cash flow
In a medical practice, the amount of actual cash generated and available for use by the medical practice within a given period of time.
Cash Flow Plan
Generic term for any loss financing plan designed to minimize an organization’s cash overflows for Insurance. Refer: “Compensating balance plan” and “Paid-loss retro plan.” two of the most widely used cash flow plans.
Cash flow plans
A method of paying premiums under which the insured keeps a portion of the premium and pays the premium out over a given time frame.
Cash flow underwriting
Underwriting approach emphasising rapid premium growth rather than selective, profitable underwriting. The insurer expects that the investment income from the enhanced revenue will more than offset any reasonable underwriting loss. An insurer who anticipates a rise in shortterm interest rates may adopt this approach.
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A method of maximizing interest earned on premiums through rating and premium collection.
Cash fund
Funds invested by their managers, e.g. unit trust managers, exclusively in short term deposits with banks and local authorities. The interest secured is usually better than the amount that could have been achieved by individual investors.
Cash in Advance
(C.I.A.) : Payment of goods in which the price is paid in full before shipment is made. This method is usually used only for small purchases or when the goods are built to order.
Cash indemnity benefits
Payment to the insured by the insurance company after submission of an insurance claim. The insured may assign these benefits directly to the provider. Payment may or may not fully cover the insured’s total costs for the service.
Cash Insurance
The property covered by this Policy is money and/or securities in transit from one place to another. This is a first loss cover and provides for payment of a claim, without bringing in the consideration of under Insurance, pro rata average and partial average. Policy covers loss or damage to money i.e., current coins, bank and currency notes, cheques, postal orders, money orders and current postage and revenue stamps occasioned by robbery or theft or any other fortuitous cause whatsoever whilst in transit. Policy may be extended to cover (a) infidelity of employees (b) cash in safe for a period of 48 or 72 hours on account of unpaid cash which is secured in safe or strong room (c) riot, strike and terrorism damages. Since initial premium is charged on the basis of estimated total cash carryings in a year, it is necessary that when the year ends premiums are adjusted on the basis of actual carryings.
Cash ISA
An ISA that invests in cash only and is therefore also a Mini ISA. Cash is defined widely and can include bank and building society accounts, cash unit trusts, national savings products (excluding national savings certificates and premium bonds) and money market deposits. As with other ISAs, the cash ISA is free of all taxes. See CAT STANDARDS.