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Word
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Definition
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Tail
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Tail: The period of time that elapses between the writing of an insurance policy and the payment of the claim or between the loss occurrence (or the insurer's knowledge of the loss) and the payment of the claim.
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Tax Equity and Fiscal Responsibility Act of 1982 (TEFRA)
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Tax Equity and Fiscal Responsibility Act of 1982 (TEFRA): Federal tax legislation that modified tax rules and qualifications for tax shelters, changed the computation of taxes on life insurance earnings and limited tax-free withdrawals from annuity plans. The Act also defined the primary and secondary coverage responsibilities of the Medicare program and the provisions to be used by health plans in their contracts with the Health Care Financing Administration (HCFA). Among other things, this legislation spurred a rapid shift toward privatization and managed care for Medicare beneficiaries.
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Tax-Qualified Annuity
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Tax-Qualified Annuity: An annuity that is issued to a tax-qualified retirement plan. TQAs also are referred to as Tax-Sheltered Annuities (TSAs) and 403(b) plans. Generally sold on a payroll deduction basis to teachers, government employees and employees of hospitals and nonprofit organizations. The 403(b) is tax-qualified in that it allows for pretax contributions and often is an alternative to 401(k) plans. Like other annuities, the inside build-up is tax-deferred. TSAs are marketed under a two-tier system. First, a company must obtain an endorsement from the school board or other oversight committee. Then, the selling agents market directly to the individual employees. This two-tier system creates relatively high barriers to entry for potential new participants in the market.
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Tenants' Policy
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Tenants' Policy: A form of homeowners insurance policy modified to meet the needs of tenants. Also known as "renters' policy."Term. (1) The period of time for which an insurance policy is effective and in force; and (2) a provision in an insurance policy.
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Term Life Insurance
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Term Life Insurance: Life insurance protection that pays the sum insured only if the insured dies within the term of the policy. See also Decreasing Term Insurance, Deposit Term Insurance and Convertible Term Insurance.
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Terminal Funding Plans
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Terminal Funding Plans: A type of defined benefit plan, not widely used, in which an annuity is purchased for each employee, in an amount based on service and salary, as the employee reaches retirement, with the required funding amounts coming from the general resources of the plan sponsor.
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Territorial Rating
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Territorial Rating: A rating formula that takes into account geographical factors in the setting of rates.
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Third Party Administrator
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Third Party Administrator: A third party administrator or "TPA" is an entity that processes or adjudicates claims for an employee benefit plan. A TPA may provide additional services to an employee benefit plan or employer, such as collecting premiums, contracting for PPO services, providing utilization review of claims, and similar ancillary services to the operation of the employee benefit plan.
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Third Party Administrator (TPA)
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Third Party Administrator (TPA): A professional organization hired to provide plan
administration for client employees and their benefit plans. Typical duties include:
processing claims, paying providers, and providing benefit & eligibility information. These
are a few of the administrative duties that a TPA performs.
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Third-Party Administrator (TPA)
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Third-Party Administrator (TPA): A service provider engaged in the performance of administration, clerical and managerial functions related to insurance policies or employee benefit plans.
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Title Insurance:
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Title Insurance: Insurance that insures the owner of property or the holder of a mortgage upon such property against defects in the title to the property.
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Tontine Scheme
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Tontine Scheme: A pooling arrangement, no longer legal, in which a group of people agree to the payment of funds to those living after a specified period of time at the expense of those who have died.
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Tort
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Tort: A civil wrong or injury, other than that arising from a breach of contract.
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Tort Liability System
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Tort Liability System: A liability system in which fault must be established as a basis for liability, in contrast with a no-fault system where fault need not be established.
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Total Disability
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Total Disability: A disability that prevents an insured from performing every duty related to the insured's employment or from engaging in any other type of employment appropriate to the insured. See Disability.
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TPA
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TPA: See Third-Party Administrator.
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Transferable skills analysis (TSA)
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Transferable skills analysis (TSA): n evaluation of an employee who has been disabled
to determine employability and job placement potential, and to develop a vocational training
plan.
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Transitional Return-To-Work Program
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Transitional Return-To-Work Program: A program to enable employees who have been
disabled to return to modified work with retraining options. The on-site program coordinates
the efforts of company-based physical therapists, physicians, department supervisors,
occupational health nurses, and supplier-provided disability management services.
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Treasury List
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Treasury List: A listing maintained by the United States Department of the Treasury of those sureties eligible to provide surety bonds on federal projects.
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Treating Physician
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Treating Physician: The medical practitioner who has primary responsibility for the care
of a claimant. Also known as attending physician.
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Treaty
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Treaty: A contract between an insurer and a reinsurer pursuant to which the reinsurer must automatically accept the business being ceded.
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Treaty Reinsurance
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Treaty Reinsurance: The reinsurance of a class of business by a cedant that the reinsurer must automatically accept. Also known as obligatory reinsurance.
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Trending
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Trending: The process of using historical data and other statistics to forecast future events, especially with regard to price inflation of loss costs.
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Trial Work Period
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Trial Work Period: During a trial work period, a beneficiary receiving Social Security disability benefits may test his or her ability to work and still be considered disabled. We do not consider services performed during the trial work period as showing that the disability has ended until services have been performed in at least 9 months (not necessarily consecutive) in a rolling 60-month period. In 2008, any month in which earnings exceed $670 is considered a month of services for an individual's trial work period. In 2009, this monthly amount increases to
$700. (Source: ssa.gov).
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Triangle
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Triangle: An exhibit used by actuaries to show historical loss development for an insurer. The exhibit is triangular in form because losses for earlier underwriting years have longer development than those for later underwriting years.
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Triennial Examination
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Triennial Examination: A periodic examination of an insurer's books and records by regulators to verify its financial condition and compliance with applicable laws and regulations. These are labeled triennial examinations because, under NAIC guidelines, they are to occur at least once every three years.
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Twisting
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Twisting: The (illegal) practice of inducing a policyholder to terminate existing life insurance coverage through misrepresentation or incomplete disclosure.
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