Glossary

Case management is the process relating to workers compensation claims in which the recovery and rehabilitation of an injured worker is overseen by a case manager. The goal of the case manager is to focus on the rehabilitation of the individual so that the return to work is quickened while aiding the worker in achieving preinjury physical condition. This is a concept that developed in the benefit arena and has been adapted to workers compensation.

The case rate is a flat fee paid for healthcare services based on client characteristics (such as diagnosis). When a case rate is used, the healthcare provider covers all of the services the client requires for a specific time period. Also known as a bundled rate or flat fee-per-case.

Case reserves cash flow plans refer to those risk financing plans that allow the insured, rather than the insurer, to derive benefits from unused funds in the form of either unpaid loss reserves or unpaid premium dollars.

Cash balance pension plans have two distinct features: (1) the employer contributes to the plan an amount equal to a percentage of an employee's yearly earnings, and (2) the plan promises a specific rate of return on that contribution. Under a cash balance plan, the benefit is always expressed as a total account balance. Cash balance pension plans are distinct from "traditional" defined benefit pension plans, which, in contrast, promise an employee a flat dollar amount (either on a periodic or on a lump-sum basis), based on years of service and an employee's earnings in the years closest to retirement. The focus of cash balance plans is on wealth building and portability. On the other hand, traditional defined benefit plans are aimed at encouraging career employment with a single employer. Considerable litigation has arisen out of employer conversions from "traditional" defined benefit to cash balance pension plans. Older, long-term employees who typically receive lower benefits under cash balance plans have alleged that such plans are unfairly discriminatory.

Cash before cover is a regulatory concept applicable to multinational insurance programs, whereby insurers may not guarantee any coverage until all related premium payments have been received from the insured. China, Taiwan, and Nigeria are all cash before cover jurisdictions.

A cash call is a provision whereby large losses can be collected from reinsurers, rather than paid by the insurer on an account or from funds withheld or a loss escrow account.

A cash flow program is any insurance rating method that allows the insured to hold and benefit from loss reserves until paid as claims—for example, deferred premium plans, self-insurance, and paid loss retros.

Cash flow return on investments (CFROI) is earnings before interest, dividends, depreciation, and amortization (EBIDDA) divided by tangible assets.

Cash flow underwriting refers to rating a risk based on an expectation that any incurred losses will pay out slowly providing for the insurer to earn investment income on reserves adequate to cover any rate deficiency. This is common during "soft" markets when interest rates are high and insurers are competing for market share.

A cash refund annuity refers to an annuity payment contract that provides for refund of any principal remaining at the death of a primary annuitant.