Standard
Program
Guaranteed Cost:
An insurance contract whereby in exchange for the payment of a premium (based on payroll, class codes and rates) the insurance company pays all work-related injury and illness claims.
Large Deductible Plan:
Helping large businesses and
organizations achieve their risk management objectives and manage their
total cost of risk - that's the value of The Hartford’s risk management
practice.
http://mb.thehartford.com/large_organizations/large_organizations.asp
Deductible Plan:
In this guaranteed cost program, the company pays claims on a first dollar basis and then bills the insured for the deductible amount (deductibles can range from $500 per claim to $500,000 per claim and can be subject to an aggregate or stop loss).
Self Insured Retention:
In this guaranteed cost program, the insured is responsible for the payment of claims up to the pre-selected self insured retention. In most cases the insured is responsible for hiring a third party administrator to handle claims. Once the self insured retention level is met, the insurance company can opt to take over the claim or pay the TPA to continue administration. Due to the involvement of the TPA, SIR programs usually start at $10,000 and go up from there.
Retrospective Rating:
A plan under which the premium is determined after the policy has expired based on contractual factors, chiefly the loss experience of the insured during the policy term. Designed to encourage safety by the insured and to compensate the insurer if larger than expected losses are incurred.
Dividend
Plan:
A guaranteed cost plan where the insurance company may elect to share in the dividends declared by the them to their policyholders.
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