New insurances as opposed to renewal of existing insurances.
Tag: RAW
New business strain
Occurs when the early years’ premiums under a contract, less the initial expenses and any early claims, are not sufficient to cover the reserve, plus any explicit required solvency margin, that the company wishes to set up. An expanding life insurer may find that the unexpired premium reserve is increasing faster than it is being released making it difficult to achieve the required margin of solvency. Zillmerization allows for this situation. Reinsurance on a risk premium basis is another possible solution.
New Central Fund
The fund held, managed and applied by the Society pursuant to the New Central Fund Byelaw (No. 23 of 1996).
New entrant contribution rate
The amount estimated as being sufficient to provide pension benefits for future entrants, including any contribution required from the members.
New for Old
A basis for property insurance on e.g., household contents when the insurer agrees to pay the replacement cost of property lost or destroyed, without a deduction for depreciation. (02) Sec.69 of MIA 1963 allows insurers to deduct a reasonable amount from any claim for cost of repairs (usually terms thirds) to allow for betterment enjoyed by the assured. However, NEW FOR OLD clause states “Claims payable without deduction new for old.” Thus, Hull insurers waive their right to such deductions from claims. However, Average adjusters are not permitted to waive the deductions where a ship is older than 15 years of age.
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Purchasing new parts to replace old or damaged parts instead of repairing the old ones.
New for old policies
Cover for household contents where an item lost or destroyed would be replaced with a new item, with no deduction for wear and tear. It is ‘replacement as new’ but if the ‘new’ is superior to the ‘old’ the insured pays for ‘betterment’. Business insurance equivalent is the replacement clause. Sums insured must represent full replacement costs.
New Less Physical Depreciation and Obsolescence Replacement Cost Value
This method subtracts some allowance from new replacement cost, for physical depreciation, economic obsolescence or both. The reasoning behind the concept is that the business will gain if a property is replaced with a new property. The main difficulty is measuring physical depreciation and economic obsolescence. (i) Physical depreciation is the result of age plus wear and tear. (ii) Economic Obsolescence is illustrated by change in fashion or development of new, more efficient machinery. For valuing personal property, one must be careful to include costs for transportation, installation etc.
New Types of Coverage or Add – on options for Health Insurance
In addition to usual hospitalization for a specified minimum number of hours the insurers are also coming up with variety of new coverage of items such as transplantation, hospitalization expenses of organ donor, cost of artificial limbs, cost of pacemakers, cost of hemodialysis, ambulance charge, pre and post hospitalization, periodic health checkup, cost of surgeries done under day care, maternity, waiver of conditions relating to minimum number of beds etc.
New York Standard Fire Policy
Once the benchmark of property policies, it was adopted for use in all but a handful of states. The familiar provisions of its 165-numbered-lines survive in Insurance Service Office property policies as well as in independently produced forms.
New York standard fire policy (Property Insurance)
A basic contract for fire insurance that was widely used in almost all states. The policy covered losses due to fire, as well as lightening, and was a predecessor to modern forms. This policy is no longer widely used, but still exists in some states.