The Families First Coronavirus Response Act (FFCRA) — the Families First Coronavirus Response Act — is a law passed in March 2020 that requires employers with 500 or fewer employees to provide paid leave to their employees. illness or extended family leave and sick leave for specified reasons related to the COVID-19 pandemic. It requires up to 80 hours of paid sick leave at the employee’s normal rate while the employee is in quarantine or experiencing symptoms of COVID-19 and is seeking medical attention. If an employee needs to care for a quarantined person or care for a child whose school or child care facility is closed due to a pandemic, the employee is entitled to 80 hours of paid sick leave equal to two-thirds of his or her regular rates. to pay. An additional 10 weeks of paid extended family leave and sick leave equal to two-thirds of the employee’s regular wage rate must also be provided if the employee is to care for a child whose school or childcare provider is closed for COVID-related reasons. 19.
Insurance is a contractual relationship that arises when one party (the insurer), for a fee (premium), agrees to compensate the other party (the insured) for losses caused to a certain subject (risk) caused by certain unforeseen circumstances (hazards or dangers). The term ‘guarantee’, commonly used in England, is considered synonymous with ‘insurance’.
The 10/10 Rule is a matter of analyzing and demonstrating the transfer of risk as a precondition for the use of reinsurance accounting, which was codified in the early 1990s with the adoption of Financial Accounting Standard (FAS) 113 (and its statutory counterpart, SSAP 62). FAS 113 itself was a response to alleged abuses and set the standard for testing whether something should be called an insurance contract. FAS 113 required that the transfer of risk be demonstrated by comparing the present value of the cash flows associated with the contract and, in particular, by exceeding certain thresholds of “significance” of risk. The thresholds, often referred to as the 9a and 9b tests, are: 9a. The reinsurer assumes significant insurance risk under the reinsured parts of the underlying insurance contracts. 9b. It is possible that the reinsurer could suffer a significant loss from the transaction. While neither “significant” nor “reasonably possible” was defined in this context, standard rules of thumb quickly emerged in the implementation of FAS 113. The most commonly cited is the “10/10 Rule”. This rule states that a contract reaches a threshold if there is at least a 10 percent chance that it will suffer a loss of 10 percent or more in present value (expressed as a percentage of the contract premium ceded).