Analysis involving a random variable. For example, a stochastic model may include a frequency distribution for one assumption. From the frequency distribution, possible outcomes for the assumption are selected randomly for use in an illustration.
Insurance Encyclopedia
Stock
(i) Insurance Company that issues stock as compared to a mutual Insurance Company. (ii) Merchandise as compared to fixture, machinery or furniture.
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Merchandise held in storage or for sale, raw materials, and in-process or finished goods, including supplies used in their packing or shipping.
Stock (Property Insurance)
Materials that have not yet finished the manufacturing process or merchandise items that are for sale.
Stock bonus plan
Employee-benefit plan in which a portion of the employees’ salary is in the form of the employer’s stock.
Stock company
In insurance, this is a business owned and operated by a group of stockholders whose investments provide the safety margin necessary for the issuance of guaranteed, fixed premium, nonparticipating insurance policies. The stockholders share in the profits and losses of the company. Also referred to as stock insurance company, stock insurer , or stock life insurance company .
Stock endorsement
A fidelity guarantee insurance endorsement to extend the policy to cover loss from misappropriation or improper dealing with stockin-trade by the person guaranteed.
Stock Exchange Contingency Policy
The Policy covers protection against contingency where the signature of transferor attested by a member broker is later discovered as a forged one. The Policy covers inability of the brokers to complete transactions due to forgery, fabrication, fraud or misrepresentation by the principals. Indemnity is provided up to a stated limit for each stock exchange and all its registered members brokers subject to further a stated limit per Broker. Similar Policy to indemnify the Joint Stock Companies up to a stated limit is also defined to cover losses incurred by the Companies due to non-completion of share transfer transactions for similar reasons.
Stock Insurance Company
A Company owned and controlled by stock holders and conducted for profit. IT sets a premium charged for Insurance assuming all liabilities on a corporate basis. The owner of the business are paid the profits.
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An insurance company owned by its stockholders who share in profits through earnings distributions and increases in stock value.
Stock Insurer
See: “Stock Insurance Company.”
Stock life insurance company
See: stock company.