business other than life insurance whereby in return for one or more premiums a sum or series of sums is to become payable to the insured in the future.
Tag: RAW
Capital redemption policy
Policies, unrelated to human life, whereby a company regularly sets aside money so that on maturity it can retire its bonds, debentures or preferred stock. The so-called ‘sinking fund’ also enables the company to replace wasting assets such as leases (leasehold redemption policies). The policies are long-term business but not part of the life fund.
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A Policy that provides a specific sum of money after a specific interval (also known as a Sinking Fund Policy)
Capital stock
Investment certificates that represent the amount of money or property contributed by shareholders invested to provide money for a corporation to do business and buy equipment.
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The ownership of a corporation as expressed in individually or jointly held shares of stock.
Capital stock company
An insurance company owned by stockholders rather than by its policyholders.
Capital Stock Insurance Company
A Company having an addition to surplus and reserve funds and capital fund paid in by Stock Holders.
Capital sum
A specified payment for accidental dismemberment or loss of sight.
Capital Sum Insured (CSI)
The amount specified in a Personal Accident Insurance Policy for payment in the event dismemberment and sight losses to the insured or on death of the insured to the nominee.
Capital Transaction
The sale of a capital asset, such as stock, which results in the transaction being taxed as ordinary income and not as a dividend.
Capital unit
A charging device used by unit trust managers. In the early years (e.g. up to three) premiums are allocated to capital units in order to recover expenses.
Capitalised value
The amount used for underwriting in relation to occupational pension schemes policies when a pension provision is to be made for a member’s spouse or other dependants.