An Asset Protection Scheme (APS) is a program designed to safeguard assets, particularly in the banking sector, by providing guarantees against a portion of an institution’s non-performing or risky assets.
In the context of life assurance policies, the 'assured' is the individual who stands to receive the benefit of the policy upon the death of the insured or when the policy matures, ensuring a secure financial future.
A security for which ownership is determined solely by possession of the physical certificate, allowing for anonymous transfer and posing risks for illegal activities like money laundering and tax evasion.
A measure of the financial soundness of insurance companies, provided by Best's Rating Service, with the top rating being A+. This rating is crucial for buyers of insurance or annuities as it indicates the financial security of the company, and is also vital for investors in insurance stocks.
Collateral assignment is the designation of a policy's death benefit or its cash surrender value to a creditor as security for a loan. If the loan is not repaid, the creditor receives the policy proceeds up to the balance of the outstanding loan, and the beneficiary receives the remainder.
A Commercial Forgery Policy provides coverage for an insured who unknowingly accepts forged checks. This insurance policy helps businesses mitigate the financial loss from fraudulent activities involving forged instruments.
A contributory pension plan is a retirement savings plan in which both the employee and employer contribute funds. These plans are designed to provide financial security to employees after retirement by pooling resources from both parties.
Fixed capital of a company which gives confidence to creditors for investing in the company by providing assurance of a stable capital base.
Deposit insurance is a safety net provided to protect depositors' funds in the event of a bank failure. This system maintains public confidence in the banking system by ensuring that depositors' money is safe up to a certain limit, even if their bank ceases operations. It is typically offered by a government agency or a privately-operated insurance fund.
The Federal Savings and Loan Insurance Corporation (FSLIC) was a U.S. government agency established to insure depositors in savings and loan associations against loss of principal. It was founded in 1934 and disbanded in 1989, with its functions transferred to the Federal Deposit Insurance Corporation (FDIC).
A fixed annuity is an investment contract sold by an insurance company that guarantees fixed payments, either for life or for a specified period, to an annuitant. It provides a stable and predictable income stream, making it a popular choice for retirees seeking financial security.
A funded pension plan is a type of retirement plan where funds are currently allocated to purchase future retirement benefits, ensuring that employees receive retirement payments even if the employer is no longer in business at the time of retirement.
A hybrid annuity is a contract offered by an insurance company that combines the benefits of both fixed and variable annuities, offering a balance between guaranteed returns and potential for higher earnings.
Living benefits of life insurance refer to advantages and financial support provided to policyholders while they are still alive, ensuring additional financial security during critical life events.
A noncontributory qualified pension or profit-sharing plan (NQP/PSP) is a retirement plan entirely funded by the employer, with no contributions required from the employees. These plans are established for the employees' benefit, ensuring financial security upon retirement.
A Patriot Bond is a special designation given to the Series EE Savings Bond following the terrorist attacks on the World Trade Center on September 11, 2001.
A Personal Identification Number (PIN) is a numeric password used for securing transactions and verifying the identity of the cardholder in various financial systems such as ATMs and point-of-sale terminals.
A recovery fund is a financial safety net for aggrieved persons in the real estate sector who are unable to collect from brokers for wrongdoings. Funded by licensee contributions, it is generally administered by a state Real Estate Commission.
Safekeeping refers to the storage and protection of assets, valuables, or documents to ensure their security and proper management. It ranges from using a bank safe deposit box to utilizing services from financial institutions like banks and brokerage firms.
A secured liability is a debt against which the borrower has pledged sufficient assets as collateral to protect the lender in case of default.
Target price refers to the projected price level of a financial security, as projected by an analyst or determined by an acquirer in various financial and business contexts.
An umbrella policy is an insurance policy providing additional liability coverage over and above the limits of a basic insurance liability policy. It is designed to provide extra protection.
