Dollar amount of the premium to cover expenses (not claims) and to allow the insurance company to make a profit for a group insurance contract.
Tag: RAW
Retention limit
Largest amount of insurance that an insurance company will write at its risk on an individual without ceding part of the risk to a reinsurer.
Retention of risk
One of the major risk management techniques. This is done by assuming responsibility for the total amount of the risk instead of insuring against it.
***
Assuming all or part of a risk instead of purchasing insurance or otherwise transferring the risk. One of the four major risk management technique.
retired lives reserve (RLR)
Fund established by an employer to provide a retired employee with life insurance. The employer’s premium payments are tax deductible. If the employee ends service before retirement, funds remain in the employee’s account and are used to fund benefits of the remaining employees.
Retiree
Individual who has retired and is no longer at work or in a business.
retirees, family members, and survivors (RFMS)
Spouse and dependents of a retired member or veteran of the U.S. government military services (e.g., Army, Navy, Air Force, Marines, Coast Guard). This phrase is used more frequently in the TRICARE and CHAMPVA health care programs.
Retirement age
Age when an employee ceases work; age when pension benefits begin to be paid. The Age Discrimination in Employment Act states that minimum mandatory retirement is 70 years of age.
Retirement annuity (Life Insurance)
A deferred annuity wherein consideration is paid in installments until reaching a pre-selected retirement age.
Retirement annuity policies/contracts (RAPS)
Replaced by personal pension plans in 1988 but pre-88 plans still run. They restrict the holder to retirement at age 60 or after. Retirement at 50 is possible only if transferring to a personal pension but the tax-free cash entitlement is calculated differently. RAPs, also called Section 226 annuities, are not subject to the earnings cap.
Retirement date
Date an elderly patient or the patient’s spouse retired from active employment. For Medicare patients, this date is important when ascertaining the primary and secondary insurance coverage.