SAP
Statutory accounting principles

Salvage
Spoiled property an insurer takes greater than to decrease its loss after paying a declare. Insurers receive recover rights over belongings on which they have paid claims, such as faultily damaged cars. Insurers that paid states on cargoes misplaced at sea now have the right to pull through sunken resources.

Schedule
A record of individual items or groups of items that are sheltered under one policy or a register of specific benefits, charges, credits, assets or other clear items.

Second To Die Life Insurance
A shape of insurance, traditionally second-hand as an parkland planning tool, that pays a loss benefit only upon the passing away of the insured who survives the greatest.

Secondary Market
Marketplace for previously issued and exceptional securities.

Securities And Exchange Commission
The association that oversees publicly held insurance companies. Those companies construct periodic financial disclosures to the SEC, including an annual financial statement, and a quarterly financial statement.

Securities Outstanding
Store in custody by shareholders.

Securitization Of Insurance Risk
With the capital markets to enlarge and diversify the assumption of insurance danger. The issuance of links or notes to third party investors directly or indirectly by an insurance or reinsurance company or a paddling entity as a means of raising cash to envelop risks.

Self-Administration
Safeguarding of all records and postulation of responsibility, by a assembly policyholder, for those covered below its insurance plan.

Self Insurance
The idea of assuming a financial risk oneself, as an alternative of paying an insurance company to get it on. Each policyholder is a self insurer in provisos of paying a deductible and co payments. A program financed completely by the business for insuring employees in its place of purchasing reporting from a marketable hauler.

Separate Account
An advantage account established by a time insurance company part from other funds, used mainly for pension devices and changeable life products.

Settlement Options
Single of more than a few ways, other than instant payment in a swelling sum, in which the insured or beneficiary may choose to have policy proceeds paid.

Severity
The ultimate loss on a mortgage incurred by an insurer as a percentage of the insurer's exposure. Size of a loss. One of the criteria used in calculating premiums rates.

Sewer Backup Coverage
An optional part of homeowners insurance that covers sewers.

Short Term Disability Income Insurance
Assurance that provides benefits only for beating from poor health or disease and excludes loss from accident or injury.

Single Premium Annuity
An allowance that is paid in full winning purchase.

Single-Premium Whole Life Insurance
A total life policy that provides fortification for the period of the insured's life in exchange for the imbursement of the total premium in one inflammation sum at the instance of application.

Social Security Freeze
A extensive period disability provision that guarantees that common safety benefits will not be changed regardless of alters in the Social Security rule.

Soft Market
An situation where insurance is plentiful and sold at a subordinate cost, also branded as a buyers’ marketplace.

Solvency
The least standard of financial physical condition for an insurance company, when property exceeds liabilities. Insurance companies’ capability to pay the maintains of policyholders.

SPAC
Single premium annuity contract

SPDA
Single premium delayed annuity

Special Risk Insurance
Exposure for dangers or hazards of particular or unusual scenery.

Specified Disease Insurance
Insurance given that an unallocated advantage, topic to a maximum amount, for expenses in link with the treatment of individual diseases, such as cancer, poliomyelitis, encephalitis, and spinal meningitis.

Spread Of Risk
The promotion of insurance in many areas to multiple policyholders to minimize the risk that all policyholders will have fatalities at the similar time.

Stacking
Perform that increases the money on hand to pay vehicle liability claims. In states where this live out is permitted by law, courts may permit policyholders who have quite a lot of cars insured below a single policy, or many vehicles insured below different policies, to add up the bound of liability available for every vehicle.

Standard Provisions
Necessities setting onward the rights and obligations of and insurers and insured people under physical condition insurance policies.

Standard Risk
Individual, who according to an insurer's underwriting standards, is allowed to purchase insurance not there paying an additional premium or particular restrictions.

State Disability Plan
Arrangement of short term income replacement necessary by a few states to coat eligible persons employed inside that state.

State Insurance Department
An directorial agency that permits insurers to do business in that position and implements state insurance laws and controls the activities of insurers in service inside the state.

State Regulation Of Insurance
The difficulty and cost variations of insurance trunks directly from state regulation of the industry. Dissimilar the securities and banking industries, the insurance business does not have a physically powerful federal failure to notice role.

Statutory Accounting
Bookkeeping practices prescribed by the insurance division of the insurer's position of domicile position on standards set by the National Association of Insurance Commissioners.

Statutory Accounting Principles / Sap
Additional conservative standards than below GAAP accounting rules, they are forced by state laws that emphasize the near solvency of insurance companies.

Statutory Capital
Calculation of statutory surplus, resources, and mandatory securities estimation reserve.

Statutory Surplus
The calculation of ordinary stock plus preferred store plus aggregate write ins for other than particular surplus funds plus unpleasant paid in and contributed leftover plus unassigned funds less treasury store.

Stock Insurance Company
An insurance company holed by its stockholders who divide in profits through earnings distributions and increases in store value.

Stock Life Insurance Company
A time insurance company owned by stockholders who divide in the company's extra earnings.

Stop-Loss Insurance
Defense purchased by nature funded buyers against the jeopardy of large losses or a strict adverse claim practice.

Straight Life Annuity
An income whose intervallic payments end when the annuitant dies.

Structured Settlement
Permissible agreement to pay a designated individual, regularly someone who has been upset, a specified sum of money in periodic payments, regularly for his or her lifetime, instead of in a on its own lump sum payment.

Subrogation
The permissible process by which an insurance company, after paying a loss, seeks to pull through the amount of the beating from another party who is officially liable for it. When an insurance company seeks payment from a third party who caused damage to the insured or damage to property.

Substandard Insurance
Insurance issued with an additional premium or individual restriction to persons who do not be eligible for insurance at normal rates.

Substandard Risk
Peoples who cannot meet the physical condition requirements of a standard health insurance policy.

Superfund
A central law enacted in 1980 to initiate attack of the nation’s abandoned hazardous misuse dump sites and to take action to accidents that release hazardous substances into the environment.

Supplemental Insurance
Extra insurance protection over the prime insurance coverage. An example is Madigan coverage, which can be purchased as a supplement to Medicare.

Supplementary Contract
An conformity between a existence insurance company and a policyholder or beneficiary by which the company keeps the cash sum payable below an insurance policy and makes payments in accordance with the settlement selection chosen.

Surcharge
An added charge, cost, or tax.

Surety Bond
A agreement guaranteeing the performance of a thorough obligation. Only put, it is a three party agreement under which one party, the safety company, answers to a next party, the owner, creditor or obligate for a third party’s debts, default or nonperformance.

Surgical Expense Insurance
Insurance policies that deliver benefits in the direction of physicians or surgeons operating fees. Profit may consist of scheduled amounts for each method.

Surgical Schedule
Record of maximum amounts payable for a choice of types of surgery; amounts are based on the complexity of the procedure.

Surplus
The remnants after an insurer’s liabilities are subtracted from its possessions. The financial cushion that protects policyholders in case of unexpectedly high maintains.

Surplus Lines
Casualty insurance exposure that isn’t available from insurers licensed in the situation, called admitted companies, and be obliged to be purchased from a non admitted transporter.

Surplus Share Reinsurance
Reinsurance in which the insurer cedes a changeable percentage of the liability, premiums, and losses for each policy sheltered on a pro rata basis.

Surrender Charge
A incriminate for withdrawals from an allowance contract before a designated admit defeat charge period, frequently from five to seven years. The fee charged when a policyholder decides to end a life insurance policy or annuity.

Survivorship Insurance
A different name for second to die insurance.

SVO
Securities valuation office, a division of NAIC

Swaps
The instantaneous buying, selling or exchange of one safety for another among investors to vary maturities in a bond portfolio, for example, or because investment goals have changed.