an aleatory contract is an agreement under which the parties are not required to perform certain actions until a certain event occurs.
Trigger events in aleatory contracts are those that cannot be controlled by either party, such as natural disasters or death.
Insurance policies use aleatory contracts whereby the insurer does not have to pay the insured until an event such as a fire resulting in loss of property occurs.
Accident insurance covers claims for injuries sustained during the term of the insurance policy, even if they are filed after the cancellation of the policy.
A co-insurance waiver clause refers to language in an insurance policy that sets out conditions under which policyholders must not pay part of a claim.
Performance Based Management (ABM) is a means of analyzing a company’s profitability by looking at every aspect of its business to determine its strengths and weaknesses.
ASO-based self-financing plans are common among large firms because they can spread the risk of costly claims over a large number of employees and dependents.
Comprehensive loss insurance is designed to protect an employer that is self-funding its employee health plan from higher-than-expected claims payments.