A clause in a business interruption policy which indemnifies the insured in respect of the cost of an accountant’s fee in respect of preparing and submitting the claim.
The insured is responsible for the cost in the absence of the clause.
Tag: UK
Accounting Classes
A category of insurance business used for the purpose of statutory returns, for which separate figures must be provided at specific points in the regulatory return submitted to the Financial Services Authority. Some accounting classes consolidate several general business classes, while others represent subdivisions of one or more classes.
Accounts and Statements Rules
The requirements for making returns to the Financial Services Authority, this is commonly referred to as the regulatory return, can be found in the Interim Prudential Sourcebook for Insurers.
(see also Integrated Prudential Sourcebook).
Accreditation
United Kingdom:
Procedure for enrolling an applicant as a Lloyd’s broker. Reaccreditation transpires following a three-year period. Before submitting an application to Lloyd’s, a UK applicant must receive authorisation from the FSA. The updated accreditation program permits foreign brokers to attain Lloyd’s broker status without the necessity of a UK-registered firm. International candidates must prove compliance with FSA-equivalent standards on the segregation of insurance funds, solvency, and professional indemnity insurance. There exist stipulations for reporting, oversight, grievance resolution, training and proficiency, as well as standards of conduct, all of which may consider regional stipulations.
United States, Healthcare:
1. Endorsement; an assessment procedure by which a curriculum or educational establishment is acknowledged by an outside organization for fulfilling specific established criteria. Accreditation can be either enduring or granted for a designated duration.
2. In reference to hospitals, it signifies that an institution adheres to specific quality benchmarks. These benchmarks are established by private, nationally acknowledged organisations that evaluate the quality of care (personnel and apparatus) in healthcare institutions typically every three years. Accreditation may be conferred by two entities: The Joint Commission (formerly referred to as the Joint Commission on Accreditation of Health Care Organisations [JCAHO]) and the American Osteopathic Association (AOA). Government entities at both the state and federal levels may acknowledge accreditation as a substitute for, or foundation of, licensure or other compulsory endorsements.
Also see certification.
Accrual rate
The rate (e.g. 1/60th) at which the pension benefit increases for each year of pensionable service in a defined benefit scheme. See ACCELERATED ACCRUAL.
Accruals concept
A pensions term referring to the accounting practice whereby revenues and costs are recognised as they are earned or incurred, rather than when money is received or paid out.
Accrued benefits
Accumulated benefits in a pension scheme for a member in respect of his service up to a given time, whether vested or not. The calculation may take account of the member’s current or projected earnings. Allowance may also be made for revaluation and/or pension increases.
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US, MEDICAL: Amount of benefit in a pension plan that has accumulated on behalf of an individual plan participant at any particular time.
Accrued benefits funding methods
Major category of funding methods in which the actuarial liability for active members is based on pensionable service accrued up to the valuation date or to the end of the control period, as appropriate. The treatment of benefits not directly linked to pensionable service is not specified but left to actuarial judgement, subject to the need for consistency between successive valuations. The standard contribution rate is derived from the definition of the actuarial liability appropriate to the accrued benefits funding method selected. It is the rate sufficient, after taking into account the actuarial liability at the beginning of the control period, and the benefits expected to be paid during that period, to provide for the actuarial liability at the end of the control period.
Accrued rights
The benefits an occupational pension scheme member has as of right. They include accrued benefits. The rights for an active member can be based on the scenario that he has left service or he could have the right to link benefits to future salary increases. Specific definitions of the term are set out in PSA93 for the purposes of preservation, contracting out and the Disclosure Regulations. PA95 contains a specific definition in relation to scheme amendments. See DISCLOSURE 1.
Accrued rights premium
A type of state scheme premium payable in respect of a member when a defined benefit scheme ceases to be contracted out. In return the state scheme takes over the obligation to provide the member’s guaranteed minimum pension.