A clause that stops a beneficiary’s creditors from collecting out of the benefits before the beneficiary recives them. This clause exists to prevent creditors from demanding the insurer pay them the benefit directly.
Insurance Encyclopedia
Spendthrift trust clause
Provision in a life insurance policy that protects its proceeds from being seized by the beneficiary’s creditors.
Spent convictions
See: REHABILITATION OF OFFENDERS ACT 1974.
Spiral
the situation that can arise when risks are repeatedly reinsured between a number of reinsurers who end up indirectly reinsuring themselves.
Split annuity
A combination of a single premium immediate annuity and a single premium deferred annuity whereby the premium is split between the two. The immediate annuity provides a current income, only part of which is taxed, while the deferred annuity accumulates over time to the original total premium invested.
Split billing
In Medicare fraud, to use a separated or divided billing scheme such as billing procedures over a period of days when all treatment occurred during one visit.
Split Charter
Where a number of consignments from different shippers are carried on the same non-scheduled aircraft.
Split Deductible
Per-loss deductible under which the amount of each loss the insured retains differs, depending upon the peril causing the loss. For example, a split deductible may call upon the insured to pay the first Rs. 5,000 of any Fire loss but only the first Rs. 500 of any windstorm loss or vice-versa.
Split dollar coverage
A general term used to refer to a plan wherein the employer and employee share the costs of the premium. How the premium is divided can vary based on the type of policy.
Split dollar plan (Life Insurance)
A life insurance contract purchased jointly by the employer and employee. They share the costs of the premiums and any benefits paid out.