In the Medicaid program, preserve some income and assets for the spouse of a nursing home resident who is on Medicaid.
Insurance Encyclopedia
spousal IRA
Trust account established for an individual who is not covered by a qualified employee retirement plan. This account may be created by purchasing individual retirement annuities from an insurance company.
Spousal liability or marital extension
Refers to coverage afforded under most D&O, EPL, fiduciary, and similar insurance policies for claims against the spouse of an insured person if the claim against the spouse is solely by reason of the spouse’s legal status as a spouse of the insured person or because of the spouse’s ownership interest in property that the claimant seeks as recovery for alleged wrongdoing by the insured person. This coverage extension does not apply to the extent the claim against the spouse alleges wrongdoing by the spouse.
Spouse and children’s insurance rider
Endorsement to an insurance policy that provides insurance coverage for dependents (spouse and children).
Spouse’s Benefit
Payments to the surviving spouse of a deceased employee, usually in the form of a series of payments upon meeting certain requirements and usually terminating with the survivor’s remarriage or death.
Spread Loss
REINSURANCE: (01) The working cover subject to a prospective rating plan. (02) A form of excess reinsurance wherein each year’s premium rate is determined by the amount of the ceding insurer’s excess losses for a specified number of preceding years. A form of experience rating.
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A form of reinsurance under which premiums are paid during good years to build up a fund from which losses are recovered in bad years. This reinsurance has the effect of stabilizing a cedant’s loss ratio over an extended period of time.
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UK: Aggregate excess of loss financial reinsurance under which premiums, under a multi-year contract, are paid during the good years to build up a fund from which losses are recovered in poor years. Premiums accumulate in an investment fund as well as additional premiums paid if losses exceed the fund balance. Cover is fixed on a per year basis, often stop loss. The key is to stabilise the cedant’s losses over time.
Spread loss reinsurance (Reinsurance)
A type of excess loss reinsurance. In this type of reinsurance, each year’s premium rate is established based on the amount of excess losses the ceding insurance company has sustained during the past years.
Spread of Risk
One of the basic functions of a sound Underwriting Policy. A system whereby the total amount at risk in any one exposure is spread amongst a large groups of Insurers and Reinsurers so that the ultimate net loss rests lightly on many rather than heavily on a few.
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The selling of insurance in multiple areas to multiple policyholders to minimize the danger that all policyholders will have losses at the same time. Companies are more likely to insure perils that offer a good spread of risk. Flood insurance is an example of a poor spread of risk because the people most likely to buy it are the people close to rivers and other bodies of water that flood. See Adverse selection.
Spread vehicle
A corporate member which participates in a number of syndicates.
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UK: Corporate member or a group of corporate members writing alongside individual members on a spread of syndicates across the market.
Spreader Clause
A clause in an Aviation Passenger liability policy which provides that if more than the declared number of passengers is carried in an aircraft the limit of liability per passenger is automatically reduced.
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UK: An aviation policy clause providing that if the declared number of passengers is exceeded, the insurer’s limit of liability per passenger will be automatically reduced.