Describes an employee who defers enrolment beyond the contractual enrolment period and then decides to become insured. Because of the change of heart, evidence of insurability is usually required to make certain that the applicant is not selecting against the plan, that is, buying insurance “when the roof is afire”.
This flat schedule contrasts with a graded schedule where different benefits are offered to different classes of people. In a level plan, everyone receives the same benefits, regardless of salary or position.
As is true of exclusions, limitations or restrictions are part of most contracts and help to define the limits of coverage. As they tend to prevent abuses, limitations serve to keep premiums from escalating. Limitations should be understood by all of the parties involved.
Limited company - A company that is incorporated.
List Bill (also called roster bill)
To ease the administration of small groups, many carriers use a premium statement that lists all of the participants and their premiums. This affords the plan administrator an instant check list of covered employees, provides the benefits and the amount to be withheld.
Long- Term Disability (LTD)
It provides disability income protection, generally after a four-month hiatus, for a stated period of time or to age 65, for accident or sickness incurred disability. Each carrier has special considerations that must be understood. Long-term disability often produces higher severity claims than does death.