S – Glossary of Terms

ALPHABETICAL LISTING 

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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.

Schedule:
A list of individual items covered by an insurance policy with their descriptions and values.

Self-Administration:
A procedure where an employer maintains all records regarding the employees covered under a group insurance plan.

Self-Insurance:
A form of risk financing through which a firm assumes all or a part of its own losses.

Settlement:
A policy benefit of claim payment.

Settlement Options:
The several ways, other than immediate payment in cash, which a policyholder or beneficiary may choose to have policy benefits paid out.

Short-Term Disability Income Insurance:
A group or individual policy usually written to cover a short term disability (13-26 weeks).

Sickness Insurance:
A form of health insurance providing benefits for loss resulting from illness or disease.

Special Damages:
Compensation awarded for actual economic losses, such as medical expenses and lost wages. (See general damages)

Special Risk Insurance:
Coverage for risks or hazards of a special or unusual nature.

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.

Standard Insurance:
Insurance written on the basis of regular morbidity underwriting assumption used by an insurance company and issued at normal rates. Standard Markets: Insurance companies for which the vast majority of people qualify for insurance.

Standard Provision:
The contract provisions required by state statutes until superseded by the uniform policy provision.

Standard Risk:
An individual who, according to a company’s underwriting standards, is entitled to purchase insurance protection without extra rating or special restrictions.

State Fund:
A fund set up by a state government to provide a specific line or lines of insurance, such as Workers Compensation..

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.

Step-Rate Premium:
A rating structure in which the premiums increase periodically at pre-determined times.

Stockholder:
A person who owns shares of stock in a corporation.

Stock Insurance Company:
A company in which the legal ownership and control is vested in the stockholders.

Stock Life Insurance Company:
A life insurance company owned by stockholders who elect a board to direct the company’s management.

Stock Redemption Agreement:
A buy-sell agreement within a corporation that involves the corporation buying back shares from a deceased stockholder.

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.

Subrogation:
The process by which an insurance company seeks reimbursement from another company or person for a claim it has already paid.

Substandard Insurance:
Insurance issued with an extra premium or special restriction to those persons who do not qualify for insurance at standard rates.

Substandard Risk:
An individual, who, because of poor health history or physical limitations, does not measure up to the qualification of a standard risk.

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.

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.

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.

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.

Surplus:
An amount by which the value of an insurer’s assets exceeds their liabilities.

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.

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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