Coverage


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Coverage

Coverage

1. The specific insured events for which an insurance company will pay a benefit. For example, a life insurance policy provides coverage in the event of death. Likewise, a health insurance policy provides money in the event of illness. Generally speaking, an insurance policy outlines what it covers and the benefits it provides under different circumstances.

2. A measure of a company's ability to pay its fixed liabilities. It is calculated by determining by subtracting its fixed payments from its operating income. High coverage indicates that the company can easily make its payments and indeed is able to set funds aside to do so in the event its income declines. Low coverage means that the company can make its payments but that it has less flexibility in doing so. A negative number indicates that the company cannot pay its fixed liabilities. The payments included in this calculation are lease payments, dividends on preferred stock, and debt service. It is also called fixed-charge coverage.
References in periodicals archive ?
He said he is unsure how much elimination of drug coverage would lower the costs of the unsubsidized plans, although some experts have estimated it would lower premiums by about 15 percent.
Waiting until there's a large claim is not the best way for an employer to find out if its BTA coverage fits its needs.
* Identifying interoperability requirements among various coverage sources.
The practice of paying for media coverage in any country leaves the field wide open for the highest bidder to always succeed, by paying for either positive coverage for themselves or negative coverage against a competitor.
The third component of playing successful off-man coverage is the ability to cover your man by using good positioning and reading the body language and alignment.
A: Historically, D & O policies simply provided the traditional "breach of fiduciary duty" coverage for a company's directors and officers.
The TRIA was meant to be a temporary fix, guaranteeing that coverage would be available while a private market for terrorism insurance developed.
Past or present illnesses may be excluded from coverage. Yet without health insurance, an accident or illness that fells you, your spouse or your child could wipe you out.
As above, the IRS determined that the contributions, coverage and reimbursements were excludible from gross income; see Tax Trends, "HRAs for Former Employees," 36 The Tax Adviser 121 (February 2005).
Three types of property coverage are (a) building, (b) business personal property and (c) personal property of others.
When Brazilian companies run through their general liability insurance and their sudden-and-accidental pollution insurance, their coverage often does not cover accidents involving underground equipment, like fuel or industrial waste tanks, and it usually only includes, as part of its off-site coverage, residential and industrial areas, not the environment in general, says Walter Polido, the technical and juridical director of the Brazilian office of Munich RE, a German insurer.
Another strategy is to tie employee premium contributions to compensation--with more highly paid employees paying a higher share of the premiums for health care coverage.