Actuarially fair definition

Actuarially fair means the cost of an annuity is equal to the present value of the regular payments the purchaser expects to receive.
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Actuarially fair means that for every euro of payroll taxes deposited in personal accounts, individuals would surrender future benefits worth one euro in present value (calculated using the government’s long- term borrowing rate and average mortality factors).
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Actuarially fair premiums means that the premiums are intended to be set according to a methodology designed to result in total premiums paid over a long period that equal the total cost of indemnities paid out plus reasonable administrative costs. In the case of RMA approved products, the Administrative and Operating (A&O) costs of a private insurer are actually paid separately. USDA directly reimburses insurers for A&O costs, following a complex set of rules about what costs are allowed. Thus, the total cost of RMA insurance is the premium plus the direct payment for A&O. For LGM-­‐D, the A&O costs are in the vicinity of 20% of the total premium.
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Examples of Actuarially fair in a sentence

  • Actuarially fair price is the price at which insurance company selling insurance makes zero-expected profits.

  • Actuarially fair retirement systems that link pension benefits to longevity not only on a macro level but also on the level of homogeneous group of workers can facilitate retirement ages that are better tailored to the health of workers.

  • Figure 3: Actuarially Fair G-Fees All Periods Normal Times Crisis Times 300 250 Actuarially fair g-fee 200 150 100 50 0 0 50 100 150 200 250 300 Exogenous g-fee The graphs show the actuarially fair g-fee (y-axis) for seven economies that differ by their exogenously given g-fee (x-axis).

  • Actuarially fair premiums, which are expected to arise in a competitive industry that offers spot contracts, should increase at the same rate the death probability increases with age.

  • From this it is obvious that we reach our third result.Result Three: Actuarially fair insurance premia induce more health conscious be- havior, and result in less consumption of health care in equilibrium, ceteris paribus.Table 1 shows the aggregate results stemming from the change in insurance premia.

  • Actuarially fair insurance (from the perspective of the insurer) is actuarially unfair for clients who do not fully repay in case of individual delinquency.

  • Actuarially fair insurance implies that marginal utilities of consumption Uc [c ˜ı, ȷ ] are equalised across all labor market states, which implies that c ˜ı, ȷ = c for all pairs (˜ı, ȷ).

  • Answer: Actuarially fair conditions means that the (state-independent) payment for each $ paid out in the accident state becomes π, and this implies that the FOC becomes (1‒π)˖u’(M‒π˖K)˖π = π˖u’(M‒L+(1‒π)˖K)˖(1‒π), which can be reduced to marginal utility being identical in the two states.

  • Actuarially fair adjustments to pensions are made for individuals who claim pensions early or late.Employment relationships do not end at the FRA (Senti, 2011).

  • This Agreement is to be governed by and construed ------------- under the laws of the State of California, without regard to conflicts of law principles.

Related to Actuarially fair

  • Actuarially Equivalent or "of equal actuarial value" means a benefit of equal value

  • Actuarial equivalent means a benefit of equal value when

  • Actuarial valuation means a mathematical determination of

  • Actuarial method means the method of allocating a fixed level payment on a Receivable between principal and interest, pursuant to which the portion of such payment that is allocated to interest is the product of one-twelfth (1/12) of the APR on the Receivable multiplied by the scheduled principal balance of the Receivable.

  • Pension Benefit means a pension, annuity, gratuity or similar allowance which is payable—

  • life annuity means an annuity payable under a policy issued to an SRS member for a term ending with, or at a time ascertainable only by reference to, the end of his life;

  • Actuarial opinion means the opinion of an appointed actuary regarding the adequacy of the reserves and related actuarial items based on an asset adequacy analysis in accordance with subrule 5.34(6) and with applicable actuarial standards.

  • Actuarial Standards Board means the board established by the American Academy of Actuaries to develop and promulgate standards of actuarial practice.

  • Lump Sum means the total sum which will have become payable to the Contractor by the Principal upon completion of the Works.

  • Actuarial Receivable means any Receivable under which the portion of a payment with respect thereto allocable to interest and the portion of a payment with respect thereto allocable to principal is determined in accordance with the Actuarial Method.

  • Net death benefit means the amount of the life insurance policy or certificate to be settled less any outstanding debts or liens.

  • Normal Retirement Benefit means the benefit described in Section 2.1.

  • Monthly Benefit means the monthly amount payable by Liberty to you if you are Disabled or Partially Disabled.

  • Retirement Benefit means the benefit set forth in Article 5.

  • Supplemental Retirement Income Benefit means an annual amount (before taking into account federal and state income taxes), payable in monthly installments throughout the Payout Period. Such benefit is projected pursuant to the Agreement for the purpose of determining the Contributions to be made to the Retirement Income Trust Fund (or Phantom Contributions to be recorded in the Accrued Benefit Account). The annual Contributions and Phantom Contributions have been actuarially determined, using the assumptions set forth in Exhibit A, in order to fund for the projected Supplemental Retirement Income Benefit. The Supplemental Retirement Income Benefit for which Contributions (or Phantom Contributions) are being made (or recorded) is set forth in Exhibit A.

  • Supplemental Retirement Benefit means the benefit determined under Article V of this Plan.

  • Early Retirement Benefit means the retirement benefit payable to a member following early

  • Canadian Defined Benefit Pension Plan means a Canadian Pension Plan that contains or has ever contained a “defined benefit provision” as such term is defined in Section 147.1(1) of the Income Tax Act (Canada).

  • Accrued Benefit means the amount standing in a Participant's Account(s) as of any date derived from both Employer contributions and Employee contributions, if any.

  • Annual Benefit Limit means the maximum amount of benefits paid by the Company to the Policy Holder in a Policy Year irrespective of whether any limits of any benefit items stated in the Benefit Schedule have been reached. The Annual Benefit Limit is counted afresh in a new Policy Year.

  • Death Benefit means the insurance amount payable under the Certificate at death of the Insured, subject to all Certificate provisions dealing with changes in the amount of insurance and reductions or termination for age or retirement. It does not include any amount that is only payable in the event of Accidental Death.

  • Annual Benefit means an annual sum of fifty thousand dollars ($50,000) multiplied by the Applicable Percentage (defined below) and then reduced to the extent required: (i) under the other provisions of this Agreement; (ii) by reason of the lawful order of any regulatory agency or body having jurisdiction over the Employer; and (iii) in order for the Employer to properly comply with any and all applicable state and federal laws, including, but not limited to, income, employment and disability income tax laws (eg., FICA, FUTA, SDI).

  • Supplemental Benefit means the monthly benefit payable to the Executive under this Agreement.

  • Single Life Annuity means an annuity payable for the life of a Participant.

  • Pre-Retirement Survivor Benefit means the benefit set forth in Article 6.

  • Public benefit means making capital available, or facilitating the availability of capital, to businesses in this state that have 750 or fewer employees, the intent of which is to create or retain employment opportunities for residents of this state, stabilize or increase the tax base of this state, or support the redevelopment of facilities for use by small businesses.