“An exchange of life insurance for annuities,” as defined in Section 1035a of the United States Internal Revenue Code.
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1992 CLC
A Protocol to the 1969 CLC, the International Convention for Civil Liability for Oil Pollution Damage. Makes shipowners strictly liable for oil pollution damage caused by tanker spills of persistent oil. Tonnage is used to calculate liability. CLC establishes mandatory insurance and makes direct claims against the insurer possible. The 1992 Fund supplements it (the IOPC 1992 Fund). Non-tanker bunkers are subject to the International Liability for Bunker Oil Pollution Damage 2001.
Also see the MERCHANT SHIPPING (SALVAGE AND POLLUTION) ACT OF 1994 and the POLLUTION CLAUSE.
1992 Fund
When CLC compensation is insufficient, this fund supplements the insurance-backed liabilities of tanker owners’ CLC. The International Convention on the Establishment of an International Fund for the Compensation of Oil Pollution Damage, signed in 1992, is the foundation of the Fund. The Fund is an international intergovernmental organisation. The Fund’s maximum payout for a single incident was increased in November 2003 to £203 million in Special Drawing Rights (equivalent to £180 million). The Fund is supported by levies levied on the oil industry.
See Also 1992 CLC.
200% Accumulation Clause
The insured may select a sending limit based on his experience and needs, as well as take steps to ensure that the maximum value per vessel or other conveyance is not exceeded. There are circumstances beyond the insured’s control in which the accumulation may exceed the selected limits. For example, at any load port awaiting shipment, if there is a delay in vessel arrival, a port strike, etc., accumulations may exceed the policy’s sending limits. Because these events are beyond the insured’s control, the 200% accumulation clause provides him with additional protection. According to the policy, the policy will cover the entire amount at risk as long as it does not exceed twice the limit chosen per vessel or other carrying conveyance. It also imposes a duty on the insured to notify the insurer of this accumulation as soon as he or she becomes aware of it.
24-hour care coverage
A combination of work-related and non-work-related benefits that provides 24-hour coverage for illnesses and injuries.
24th Method
Based on the assumption that annual policies are written evenly over each month and risk is spread evenly over the year, this method is used to estimate unearned premium reserves. Policies written in the first month of the year, for example, are assumed to contribute 1/24th of the written premium for that month to the unearned premium reserve at the end of the year.
3-D Policy (Dishonesty Destructions and Disappearance)
A contract that covers fidelity loss, money and securities loss, counterfeiting loss, and depositors’ forgery.
3/4ths Collision Liability Clause
See Also: Running Down Clause
365th Method
A method of calculating the amount of unearned premium reserve based on the assumption that the risk is distributed evenly over the 365 days of coverage. For example, if a policy is purchased 100 days ago, 265/365ths of the premium is considered unearned.
401(k) Plan
Employer (plan sponsor) and employee contributions are combined in a defined-contribution pension plan. The employer creates and manages the plan, informs employees about how much they can contribute, how much of that contribution will be matched by the employer (if any), and what investment options are available. Employee contributions are deducted from pretax pay, lowering taxable income. Employees then direct their money’s investment by selecting from the employer’s investment options.