It is a provision common in proportional contracts which facilitate a reinsured to make a claim and receive immediate settlement for a large loss outside of the usual periodic accounting and settlement procedure.
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See: Cash Call.
Tag: RAW
Cash option
See: Commutation.
cash or deferred arrangement (CODA)
See: Section 401(k) plan.
Cash out of vested benefits
Money taken out of benefits by an employee.
Cash payment option
Life insurance policy that has a dividend option under which the dividends are paid to the policyholder in cash.
Cash premium
Insurance premium paid by the insured and received by the insurance company as distinguished from premium earned.
Cash premium accounting system
Bookkeeping system used for industrial insurance in which the agent informs the home office of the amount collected for each policy. The home office updates the policy records by posting these collections and then prepares new route collection records.
Cash refund option
Life income option with a refund that specifies proceeds remaining on the death of the beneficiary will be paid in a lump sum to the contingent payee.
Cash surrender value
Amount of money (cash) in a life insurance policy (usually whole life) that is adjusted for factors such as policy loans or late premiums that the policyholder will receive if the policyholder cancels the coverage or surrenders the policy to the insurance company. See cash value. Also called net cash value.
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This is the cash value section of an ordinary life insurance policy. If the insured ceases to pay the premiums, he or she can take the cash value in a lump sum. (See Ordinary Life Insurance).
Cash surrender value (Liability Insurance)
The amount of money due upon surrender of cash value life insurance.