An additional commission payable by the Reinsurers to the Ceding Company as a percentage of profits derived from the business. It is a pre-determined percentage of the reinsurer’s net profits after a charge for the reinsurer’s overhead, derived from the subject treaty.Overriding Commission : Commission payable in addition to the original commission particularly under retrocession treaties.Sliding Scale Commission : A ceding commission which varies inversely with the loss ratio under the reinsurance agreement, the scales are not always one to one; for example, as the loss ratio decreases by 1%, the ceding commission might increase only 5%.Super Profit Commission : Overriding profit commission payable in addition to the original profit commission particularly under retrocession and/or reciprocal treaties.Reinsurance, Commission Reinsurance Intermediary : (a) Agent’s commission: A percentage of premium paid to an agent for insurance placement services (b) Brokerage: A percentage or a fee paid to a broker for insurance or reinsurance placement services.
Tag: RAW
Profit Loading
The element of the general insurance premium to generate insurance Company profits.
Profit Margin
As a pricing factor (along with expenses and losses) the return the reinsurer expects from the degree of net risk taken. As with any investment, the reinsurer expects a larger return from risky than safe investments.
Profit sharing plan (Pensions)
A type of plan wherein certain employees of a company share in a portion of the company’s profits. This portion of the profits is set aside and may be distributed immediately, or may be distributed at a later date, for example, at retirement, death, or termination. This type of plan may qualify for tax exemptions as outlined in the Internal Revenue code.
Profit Testing
A term used for evaluating the economic value of contracts using net present value techniques i.e., proposed premium rates are tested by projecting possible levels of future business, claims, expenses, investment experience and profit. The process may be extended to include all business and so form a model office akin to those used in life companies.
Profit-sharing plan
Type of plan in which an employer pays a portion of the company’s profits to the employees. Such plans can be used as retirement income or for short-term savings.
Proforma
When used with the title of a document, the term refers to an informal document presented in advance of the arrival, or preparation of the required document, in order to satisfy a customs requirement.
Prognosis
Prediction of a probable course of a disease or condition of injury and the chances of recovery.
Program for Evaluating Payment Patterns Electronic Report (PEPPER)
Electronic data report containing hospital-specific data for a number of problem areas identified by the Centers for Medicare and Medicaid Services (CMS) at high risk for payment errors such as specific DRGs and discharges. PEPPER data allow hospitals to compare their performance to other short-term, acute care prospective payment system hospitals as a means of reducing and preventing payment errors.
Program integrity branch
TRICARE central coordinating agency that investigates and reviews alleged cases of fraud and abuse committed against the Military Health System (MHS) TRICARE program, its beneficiaries, and U.S. taxpayers. Their active involvement investigating and prosecuting health care fraud cases has resulted in a return of millions of dollars to the federal government and Department of Defense (DoD).