Terms & Definitions - W
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W formation: A technical analysis term used to describe a chart on which the price of a security has made two approximately equal bottoms over a period of time. Technical analysts try to buy at one of the bottoms in anticipation of a rise (which would make the shape of a "W" on the chart). also called double bottom. opposite of double top.
Waiting period: See Eligibility Period and Probationary Period.
Waiver of Premium Provision: A provision whereby under certain conditions a person’s life insurance will be kept in full force by the insurer without further payment of premiums. It is used most often in the event of permanent and total disability.
Waiver of Premium Reserve: Once a waiver claim has been approved by the insurer they establish a waiver of premium reserve. The level of the reserve is determined by actuarial tables. The life insurance coverage continues, without any premium due, until death, recovery or the age limit specified in the contract.
Weekly Indemnity (WI): An income replacement benefit, which is usually payable weekly, after an elimination period, to a disabled employee. It typically replaces a percentage of the employee’s earnings. Also see Short Term Disability.
Weighted Loss Ratio: This is the average loss ratio determined through the weighting process. See Weighting.
Weighting: Weighting represents the portion of both the current and prior year’s experience which will be used to calculate an average loss ratio for the purpose of determining the experience rate. Generally the most current year’s experience is given the most weight since it is assumed to be the most accurate indication of future claiming patterns. However, the most recent year may not always be indicative of past or future claiming patterns so the previous one or two years are also given some consideration. Each carrier has their own weighting formula.
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