(i) Limit of an Insurers’ liability under a fidelity bod or surety bond. (ii) Amount by which an insured’s recovery is reduced because of a Policy provision such as a coinsurance clause. See Also: “Coinsurance.”
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UK: 1. A punishment like a fine or monetary payment. It is against public policy to allow a person to insure against fines but legal defence cover is available under liability and legal expenses insurances. Penalties along with liquidated damages arising under contract are commonly excluded under liability policies. 2. The nominal sum payable by an obligor, an insurer, on breach of a condition in a bond.
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MEDICAL,USA: 1. Punishment established by law. 2. Under Medicare, the amount added to the patient’s monthly premium for Medicare Part B or for a Medicare drug plan if the individual does not join when first able. For Medicare Part D, this higher amount is deducted as long as the patient has Medicare.
Tag: RAW
Penalty (Surety)
The maximum value the insurance company is liable for, according to a Fidelity Bond.
Pending claim
Insurance claim held in suspense due to review or other reason. These claims may be cleared for payment or denied. See delinquent claim.
Penetration rate
Percentage rate at which eligible employees in a group select a system to provide their health coverage.
Pension
Funds payable monthly or annually to an individual who has retired.
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UK: A lifetime payment to a person during his retirement years having previously been an active member of a pension scheme and/or become entitled to a state pension.
Pension Benefit Guaranty Corporation (PBGC)
Federal organization that was created by the Employee Retirement Income Security Act of 1974 (ERISA) to manage the Pension Plan Termination Insurance program. It insures benefits in qualified defined benefit pension plans (DBPP) and makes sure participants receive the benefits.
Pension business
tax-exempt annuity, death in service and other business contracted with the managers of occupational pension schemes or in connection with personal pensions.
Pension cost
Amount allocated to the employer’s profit and loss account for his pension contributions over the period that scheme members are expected to work.
Pension credit
Amount in a pension credited to the former spouse of a pension scheme member following a pension sharing order. Compare with pension debit.
Pension debit
The reduction of a member’s pension by a certain percentage following a pension sharing order that matches the pension credit awarded a former spouse. It is based on the cash equivalent transfer value in regard to the order.