UK: A provision or reserve. Each class of insurance business has a fund based on the balance of premiums less claims and expenses after taking into account any transfer to or from the profit and loss account. In life insurance, it often means a pool of assets managed separately for asset and liability management purposes. Funds may be legally or contractually segregated which may limit the freedom of the company to switch assets between funds.
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Allocation of premiums from which losses can be paid.
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MEDICAL,USA: In a managed care capitation contract, the specific amount of dollars in reserve that is available to compensate the contracted provider of services.

for life insurers, an accounting concept expressing the balance of its actuarially calculated liabilities to policyholders (‘mathematical reserves’) together with miscellaneous liabilities and unappropriated surplus; may also be used to mean the assets representing the fund.

in funded basis, the balance of premiums received less claims and expenses paid in respect of business accounted for on a two or three year basis the profits of which have not been struck.

Risks of potentially wide-ranging effect on society as a whole or large segments thereof rather than individuals. They are of a catastrophic nature, e.g. war, famine, earthquake, widespread pollution and unemployment. They are generally outside the scope of private enterprise insurance with responsibility being accepted by governments. Compare with particular risks.

accounting for general insurance business on the basis that premiums, claims and expenses are related to the underwriting year in which the policy incepts and recognition of profits is deferred until a subsequent accounting period, receipts and payments being carried forward in a fund; not permitted with effect for accounting periods beginning on or after 1 January 2004.

In regard to pension schemes it is the advance provision for future liabilities by the accumulation of assets that are normally external to the employer’s business.
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Setting aside assets to meet an eventual obligation.

The plan to ensure that money will be available to pay out pension benefits as they fall due. It involves setting contributions at a certain level, such as the standard contribution rate.

The funding level expressed as a percentage.

FAL is members’ capital held in trust at Lloyd’s to pay claims when premiums trust funds are insufficient. The amount is calculated at member level using the risk-based capital model. The amount for individuals is equal to a ratio between 20 per cent and 30 per cent of the premiums they are permitted to write (depending on membership type, nature of risk, liquidity and resources). The ratio for corporate members is 50 per cent (except for dedicated corporate motor at 40 per cent). The funds must be maintained in value and be in a Council-approved form, i.e. readily realisable assets such as cash securities, letters of credit and bank and other guarantees. See LLOYD’S CHAIN OF SECURITY.
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Funds of an approved form that are lodged and held in trust at Lloyd’s as security for a member’s underwriting activities. They comprise the members deposit, personal reserve fund and special reserve fund and may be drawn down in the event that the member’s syndicate level premium trust funds are insufficient to cover his liabilities. The amount of the deposit is related to the member’s premium income limit and also the nature of the underwriting account. (See risk based capital).

Pre-paid plans purchased by a lump sum or periodic payments. A plan covers the funeral director’s fees and expenses and disbursements’, i.e. doctor’s fees, church fees, cost of a minister, cremation/burial fees, grave digging and cost of a plot. These plans have superseded the limited amounts available under industrial life and friendly society insurances.