A clause that stops a beneficiary’s creditors from collecting out of the benefits before the beneficiary recives them. This clause exists to prevent creditors from demanding the insurer pay them the benefit directly.
Tag: RAW
Spendthrift trust clause
Provision in a life insurance policy that protects its proceeds from being seized by the beneficiary’s creditors.
Spent convictions
See: REHABILITATION OF OFFENDERS ACT 1974.
Spiral
the situation that can arise when risks are repeatedly reinsured between a number of reinsurers who end up indirectly reinsuring themselves.
Split annuity
A combination of a single premium immediate annuity and a single premium deferred annuity whereby the premium is split between the two. The immediate annuity provides a current income, only part of which is taxed, while the deferred annuity accumulates over time to the original total premium invested.
Split billing
In Medicare fraud, to use a separated or divided billing scheme such as billing procedures over a period of days when all treatment occurred during one visit.
Split Charter
Where a number of consignments from different shippers are carried on the same non-scheduled aircraft.
Split Deductible
Per-loss deductible under which the amount of each loss the insured retains differs, depending upon the peril causing the loss. For example, a split deductible may call upon the insured to pay the first Rs. 5,000 of any Fire loss but only the first Rs. 500 of any windstorm loss or vice-versa.
Split dollar coverage
A general term used to refer to a plan wherein the employer and employee share the costs of the premium. How the premium is divided can vary based on the type of policy.
Split dollar plan (Life Insurance)
A life insurance contract purchased jointly by the employer and employee. They share the costs of the premiums and any benefits paid out.