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 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 Exclusions

Refers to an exclusion format in some D&ampO insurance policies pursuant to which some exclusions apply to both Insuring Agreement A (i.e., coverage for non-indemnified loss) and Insuring Agreement B (i.e., coverage for indemnified loss), and other exclusions apply only to Insuring Agreement A. The exclusions that typically apply only to Insuring Agreement A under a split exclusion format are the fraud/willful violation of statute, illegal personal profit and the Section 16(b) exclusions. Unlike other standard exclusions in the D&ampO insurance policy, these exclusions are generally included within the policy because the conduct described in the exclusions is generally considered to be conduct for which the directors and officers should not be protected by insurance. However, if the company is permitted to indemnify the directors and officers for such conduct, then the D&ampO insurer arguably should reimburse the company for that indemnification obligation and thus the exclusions arguably should not apply to Insuring Agreement B, but only Insuring Agreement A. Only some D&ampO insurance policies contain this split exclusion format. The remaining policies apply all exclusions to both Insuring Agreements and therefore all exclusions apply regardless whether the company is permitted to indemnify for the loss.

split funding

System of funding a retirement plan in which part of the total contributions are used to purchase a permanent life insurance policy and the remainder of the funds are used to purchase another fund held and invested by a trustee.