The term deposit refers to sums of money which may have to be deposited with a Government before permission in granted to transact Insurance business.
Insurance Encyclopedia
Deposit (Pensions)
Payments made toward a fund by the employee, the employer, or both.
Deposit administration (Liability)
A group annuity offering an undivided account in which contributions can amass. The money in this account is then used to buy annuities for each person’s retirement.
Deposit administration contract
Mechanism to fund a retirement plan in which the plan sponsor puts the plan assets in an insurance company’s general account. At the time of the employee’s retirement, the insurer withdraws sufficient funds from the general account to buy an annuity for the plan participant. This type of contract protects the plan sponsor from investment loss and guarantees minimum investment returns.
Deposit administration group annuity
Type of group annuity contract that provides for the accumulation of contributions in an undivided fund out of which annuities are purchased as the individual members of the group retire.
Deposit administration group annuity (Pensions)
A group agreement that offers a deposit account before retirement. After retirement, annuities are then purchased from this deposit account.
Deposit administration scheme
A defined contribution scheme also called a cash accumulation policy, used for employee groups or individual personal pensions. Contributions are held by the life office to accumulate with interest. When benefits become payable money is withdrawn to purchase annuities and pay lump sums. The life office carries no risk but acts as investor. The pre-retirement mortality risk is left to the scheme trustees who usually arrange separate cover.
Deposit against third party risks
Motor Vehicles (Third Party Risks) Deposit Regulations 1992 provide for a deposit of £500,000 with the Accountant General of the Supreme Court by an individual or entity as an alternative to effecting compulsory motor insurance (Road Traffic Act 1988 (as amended)).
Deposit back
in reinsurance, a deposit of the whole or part of the premiums paid by a cedant company with that company as surety for payment by the reinsurer (also called treaty deposit).
Deposit back arrangement
Amounts deposited by reinsurers with cedants to help finance the reinsurers’ proportion of claims. The amount retained is usually such proportion of the agreed premium. The deposit is released annually in arrears.