- Salvage: The recovery made by
an insurance company by the sale of property which has been
taken over from the insured as a part of loss settlement.
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- Schedule: A list of individual
items covered by an insurance policy with their descriptions
and values.
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- Self-Administration: A procedure
where an employer maintains all records regarding the employees
covered under a group insurance plan.
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- Self-Insurance: A form of risk
financing through which a firm assumes all or a part of
its own losses.
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- Settlement: A policy benefit
of claim payment.
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- Settlement Options: The several
ways, other than immediate payment in cash, which a policyholder
or beneficiary may choose to have policy benefits paid out.
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- Short-Term Disability Income Insurance:
A group or individual policy usually written to cover a
short term disability (13-26 weeks).
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- Sickness Insurance: A form of
health insurance providing benefits for loss resulting from
illness or disease.
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- Special Damages: Compensation
awarded for actual economic losses, such as medical expenses
and lost wages. (See general damages)
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- Special Risk Insurance: Coverage
for risks or hazards of a special or unusual nature.
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- Split Funding: The use of two
or more funding agencies for the same pension plan. An arrangement
whereby a portion of the contributions to the pension plan
are paid to a life insurance company and the remainder of
the contributions are invested through a corporate trustee,
primarily in equities.
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- Standard Insurance: Insurance
written on the basis of regular morbidity underwriting assumption
used by an insurance company and issued at normal rates.
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- Standard Markets: Insurance
companies for which the vast majority of people qualify
for insurance.
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- Standard Provision: The contract
provisions required by state statutes until superseded by
the uniform policy provision.
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- Standard Risk: An individual
who, according to a company's underwriting standards, is
entitled to purchase insurance protection without extra
rating or special restrictions.
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- State Fund: A fund set up by
a state government to provide a specific line or lines of
insurance, such as Workers Compensation..
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- State Insurance Department:
A department of a state government whose duty is to regulate
the business of insurance and give the public information
on insurance.
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- Step-Rate Premium: A rating
structure in which the premiums increase periodically at
pre-determined times.
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- Stockholder: A person who owns
shares of stock in a corporation.
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- Stock Insurance Company: A company
in which the legal ownership and control is vested in the
stockholders.
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- Stock Life Insurance Company:
A life insurance company owned by stockholders who elect
a board to direct the company's management.
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- Stock Redemption Agreement:
A buy-sell agreement within a corporation that involves
the corporation buying back shares from a deceased stockholder.
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- Strict Liability: Usually dealing
with property insurance, the liability that manufacturers
and merchandisers may be subject to for defective products
sold by them for damages, regardless of fault or negligence.
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- Subrogation: The process by
which an insurance company seeks reimbursement from another
company or person for a claim it has already paid.
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- Substandard Insurance: Insurance
issued with an extra premium or special restriction to those
persons who do not qualify for insurance at standard rates.
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- Substandard Risk: An individual,
who, because of poor health history or physical limitations,
does not measure up to the qualification of a standard risk.
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- Supplementary Contract: An agreement
between a life insurance company and a policyholder or beneficiary
by which the company retains the cash sum payable under
an insurance policy and makes payments in accordance with
the settlement option chosen.
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- Surety Bond: A bond guaranteeing
that a principal will carry out the obligation for which
they are bonded for. Most often this is issued to a contractor.
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- Surgical Expense Insurance:
Health insurance policies, which provide benefits toward
the physician's or surgeon's operating fees. Benefits may
consist of scheduled amounts for each surgical procedure.
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- Surgical Schedule: A list of
maximum amounts payable by the policy for various types
of surgery, with the amount based on the severity of the
operation.
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- Surplus: An amount by which
the value of an insurer's assets exceeds their liabilities.
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- Surplus Lines: A risk or a part
of a risk for which there is no normal insurance market
available, insurance written by non-admitted insurance company.
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- Syndicate: A group of insurers
or underwriters who join to insure property that may otherwise
be to high of a hazard
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Back to the Glossary
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