A form of life insurance whose face value depends on the value of the products used for equity, such as securities, at the time of payout.
Insurance Encyclopedia
Variable Limit
In property Insurance, limit which automatically increase at each Policy anniversary unless the insured specifically rejects the increase. In order to increase the amount of coverage in keeping with the average annual inflation rate as measured by one or more applicable price indexes. While not guarantying adequate coverage, a variable limit can prevent underinsurance from growing significantly more severe. See ‘Underinsurance.’
Variable premium life insurance
See: indeterminate premium life insurance .
Variable Quota Share Reinsurance
See: Surplus Reinsurance, Surplus Share Reinsurance.
Variable universal life (Life Insurance)
A contract offering the features of both a variable life insurance policy and a universal life insurance policy. Premiums and benefit amounts are adjustable, based on the needs of the policyholder.
Variable universal life insurance
Type of whole life insurance that combines the premium and death benefit flexibility of universal life insurance with the flexible investment and risk of variable life insurance. Such policies are considered securities contracts and must be registered with the Securities and Exchange Commission (SEC). Agents who have passed the National Association of Securities Dealers (NASD) may sell this type of insurance.
Variance
The square of the standard deviation.
Variation of permission
FSA has power to vary a firm’s Part IV permission on its own initiative. The grounds for exercising this power are set out in FSMA, ss.45-47.
VAT
(Value Added Tax): A sales or consumption tax which the end user pays. Typically, this is a “hidden” tax, added to the list price of the goods in question.