Insurance and risk management terminology · MLC-0106

Insurance and risk management terms: S (304)

• Safe depository coverageInsurance that protects a financial institution or other business acting as a depository against liability...
• Saffir-simpson scaleA one-to-five rating of hurricane intensity based only on maximum sustained wind speed, running from Category...
• SalesThe total gross revenue generated by a business from its operations, used as a primary exposure base for...
• Salesmen's samples coverageA type of inland marine insurance that protects against loss of or damage to product samples used by a...
• Saline substances contamination endorsementA liability endorsement, such as ISO CG 22 47 and CU 22 08, that excludes coverage for property damage to...
• SalvageDamaged property that an insurer takes possession of after paying a claim, typically for a total loss. The...
• Salvage valueThe estimated amount that damaged property would fetch if sold after a loss. When an owner keeps a total loss...
• Sand dunesNaturally occurring accumulations of sand in ridges or mounds landward of the beach. Human alteration of sand...
• Sarbanes-Oxley Act of 2002 (SARBOX), (SOX)A federal law enacted to protect investors by improving the accuracy and reliability of financial reporting...
• Savings bank life insuranceLow-cost life insurance sold over the counter by mutual savings banks without agents or sales commissions, a...
• "Say-on-pay" provisionA corporate governance requirement, mandated by the Dodd-Frank Act in the United States, that gives...
• ScheduleA list or enumeration of specific items, properties, or coverages included within an insurance policy. A...
• Schedule bondA type of fidelity bond that lists each employee covered by name or position, along with a specific amount of...
• "Schedule P" reserveA statutory reserve established by property and casualty insurers for unpaid losses and loss adjustment...
• Schedule ratingA method of adjusting an insurance premium based on specific characteristics of the insured risk that are not...
• Scheduled building policyA policy that requires a specific amount of insurance to be designated for each building and its contents.
• Scheduled limitsSpecific maximum amounts of coverage assigned to individual items or categories of property within an...
• Scheduled lossA type of permanent partial disability benefit paid for the loss or loss of use of a specific body part, such...
• School board liability coverageInsurance protection for school districts, their board members, administrators, and employees against claims...
• Sears v. CommissionerA landmark U.S. tax court case that addressed the tax treatment of certain insurance arrangements within a...
• Seasonal riskThe heightened probability of loss or damage that occurs during specific times of the year due to predictable...
• Second surplus reinsuranceA surplus share reinsurance treaty layered above the first surplus treaty, giving the ceding insurer extra...
• Secondary beneficiaryAn individual or entity designated to receive the proceeds of a life insurance policy or annuity if the...
• Secondary dependent propertiesBusinesses one step removed from the insured in its supply chain, such as a supplier to the insured's own key...
• Secondary payerAn insurance plan or entity that pays for healthcare costs after the primary payer has paid its share. This...
• Section 13161. Section of the National Flood Insurance Act of 1968, as amended, which states that no new flood insurance...
• Section 501(c) of the US Internal Revenue CodeA provision of US tax law that outlines the requirements for organizations to be recognized as tax-exempt by...
• Section 702 of the Civil Rights Act of 1964A provision within Title VII of the Civil Rights Act of 1964 that exempts religious organizations from the...
• Securities Act of 1933A federal statute enacted to regulate the primary market for securities, requiring full and fair disclosure...
• Securities class action claimsLawsuits filed by a group of investors against a company and its executives or directors, alleging...
• Securities Deposited with Others Coverage Form JAn ISO commercial crime coverage form, lettered J, that insures a business's securities against theft...
• Securities Exchange Act of 1934A U.S. federal law governing the secondary market trading of securities, such as stocks and bonds. This act...
• Securities insuring agreementAn insuring agreement in a financial institution bond, lettered E in the standard forms, that pays for loss...
• Securities valuation reserveA mandatory reserve account maintained by life insurance companies to absorb potential losses from...
• SecuritizationThe process of pooling contractual debts, such as mortgages, auto loans, or credit card receivables, and...
• Securitization of riskThe process of transforming insurable risks into marketable securities that can be traded in financial...
• Security holder exclusionA directors and officers policy exclusion for claims brought by security holders of the organization with the...
• Security requirementsConditions or measures mandated by an insurer that an insured must implement to mitigate specific risks...
• Seedsmen's errors and omissions liability insuranceProfessional liability insurance designed for businesses involved in the production, sale, and distribution...
• Segregated cell captive (SCC)A type of captive insurance company structured with a central core and multiple individual cells, where the...
• SegregationThe legal or operational separation of assets, liabilities, or risks within an organization or financial...
• Select mortality tableA statistical compilation of death rates that differentiates between insured lives based on the duration...
• SelectionThe process by which an insurer evaluates and classifies risks to determine whether to accept or reject an...
• Self ratingA method of determining workers' compensation premiums for very large employers where the premium is...
• Self-contained policyAn insurance policy that includes all necessary provisions, conditions, and endorsements within a single...
• Self-insuranceA risk financing method where an individual or organization assumes financial responsibility for its own...
• Self-insurance poolAn arrangement where multiple organizations, often with similar risk profiles, collectively self-insure their...
• Self-insured retention (SIR)A specified amount of a loss that an insured must pay out of pocket before their insurance policy begins to...
• Self-insurer's bondA type of surety bond required by regulatory authorities from organizations that choose to self-insure...
• Self-procurement taxesA tax levied on policyholders who purchase insurance coverage directly from an insurer that is not licensed...
• Selling price clause or endorsementA provision added to a property insurance policy that modifies the valuation method for finished goods that...
• Senior Claim Law Associate (SCLA)A professional designation awarded to individuals in the insurance claims field who have demonstrated...
• Separate accountAn investment account kept by a life insurer apart from its general account to hold assets that back variable...
• Service fulfillment insuranceCoverage that protects a business against financial losses arising from its failure to deliver a contracted...
• Servicemembers group life insurance (SGLI)A low-cost group life insurance program provided by the U.S. Department of Veterans Affairs to eligible...
• Servicing carrierAn insurance company that handles the administrative functions for policies issued by another insurer or for...
• Servicing contractors riderA rider to a financial institution bond that adds coverage for outside servicing contractors, meaning persons...
• SetbackSetbacks may be used to keep development out of harm's way. Setback standards establish minimum distances...
• SetoffA legal right allowing one party to reduce or cancel a debt owed to another party by applying a reciprocal...
• Settlement lagThe delay between the date a claim is reported to the insurer and the date it is settled and paid in full. It...
• Settlement optionsThe choices available to a beneficiary or policyholder regarding how the proceeds of a life insurance policy...
• Settlement programsStructured initiatives designed to resolve multiple claims or disputes arising from a common event or issue...
• Settlor coverageAn extension of a fiduciary liability policy that covers claims alleging errors in settlor functions, the...
• Severability of exclusionsA policy provision stating that an exclusion applicable to one insured party does not necessarily apply to...
• Severability of interests clauseA provision in an insurance policy, often found in liability coverage, that treats each insured party as if...
• Several liabilityA legal principle where each party responsible for a loss is liable only for its own proportionate share of...
• Severance payCompensation that an employer provides to an employee after their employment is terminated, usually through...
• Severance pay exception wordingA specific clause within an Employment Practices Liability (EPL) insurance policy that clarifies how...
• Severe repetitive loss building1. Any building that: • Is covered under a Standard Flood Insurance Policy made available under this title; •...
• Severe repetitive loss propertyEither a severe repetitive loss building or the contents within a severe repetitive loss building, or both.
• SeverityThe financial magnitude of a loss event, representing the cost incurred when a risk materializes. It...
• Sewer systemsSee Utilities.
• Sexual abuse exclusionA provision in an insurance policy that specifically removes coverage for claims arising from acts of sexual...
• Sexual harassmentUnwelcome sexual advances, requests for sexual favors, and other verbal or physical conduct of a sexual...
• Sexual orientation discriminationUnfair treatment of an individual in employment based on their actual or perceived sexual orientation. This...
• Share repurchasesThe action by which a publicly traded insurance company buys back its own stock from the open market...
• Sharing economyAn economic model where individuals or organizations share access to goods, services, or assets, often...
• Shear wallsWalls used for structural support but not structurally joined or enclosed at the ends (except by breakaway...
• Sheet flow hazardA type of flood hazard with flooding depths of 1 to 3 feet that occurs in areas of sloping land. The sheet...
• Shortfall riskThe risk that an investment portfolio's actual return will fall below a target return or a minimum acceptable...
• Short-rate cancellationA method of calculating the premium refund when an insurance policy is canceled by the insured before its...
• Shrinking limits defense provisionA clause in a liability insurance policy that reduces the available policy limits by the amount of defense...
• Shrink-wrap agreementA standardized contract with terms and conditions that are not negotiated but are deemed accepted by the...
• Side A coverageA component of a Directors and Officers (D&O) liability insurance policy that provides direct coverage to...
• Side A-only coverageA specialized Directors and Officers (D&O) liability insurance policy that exclusively provides direct...
• Side B coverageA component of a Directors and Officers (D&O) liability insurance policy that reimburses the company for its...
• Side C coverageA component of a Directors and Officers (D&O) liability insurance policy that provides coverage directly to...
• Signaling capitalThe practice by an insurer of maintaining capital levels significantly above the regulatory minimum to signal...
• Significant deviationA legal standard in workers' compensation used to determine if an employee's actions at the time of an injury...
• Silent cyberThe exposure to cyber-related losses that is not explicitly covered or excluded in traditional property and...
• SilicaA common mineral, silicon dioxide, that can cause severe respiratory diseases, such as silicosis, when...
• Simulation risk modeling methodA quantitative technique for assessing risk by running a large number of computer-generated scenarios to...
• Single buildingA building that is separated from other buildings by intervening clear space or solid, vertical, load-bearing...
• Single entity coverageAn insurance approach in condominium or homeowners association (HOA) policies where the association's master...
• Single family dwelling1. Either: • A residential single-family building in which the total floor area devoted to non-residential...
• Single interest insuranceCoverage that protects only one party's financial interest in a property, even if multiple parties have an...
• Single premium insuranceAn insurance policy purchased with one lump-sum payment at the time of issue, rather than through a series of...
• Single premium variable life insurance policyA life insurance contract funded by a single upfront payment, where the policy's cash value is invested in a...
• Single premium whole life insurance policyA type of permanent life insurance funded with one lump-sum payment at the time of purchase, rather than...
• Single State Registration System (SSRS)A system that allows motor carriers to register their interstate operating authority and pay required fees to...
• Single-entry multiple company interface (SEMCI)A technology standard that permits an independent insurance agent to enter client data once into an agency...
• Single-owner captiveAn insurance company established and owned by one non-insurance entity to insure the risks of that entity and...
• Sinkhole collapseA sudden, abrupt collapse of the ground into subterranean voids created by the erosion of limestone or other...
• Sistership liability exclusionA provision in product liability insurance policies that excludes coverage for the costs of withdrawing or...
• SitusThe geographical location where an employee's work is performed or where an injury occurs. Situs is a primary...
• Size classA categorization of businesses or risks based on their revenue, number of employees, or other quantitative...
• Skilled nursing careMedical care provided by or under the direct supervision of licensed health professionals, such as registered...
• SlabbedA claims description for a building destroyed so completely that only its concrete foundation slab remains...
• SlanderThe act of making false and defamatory spoken statements about another person that harm their reputation...
• Sliding scale commissionA method of compensating insurance agents or brokers where the commission rate varies based on factors such...
• Sliding scale dividendA type of dividend plan offered by some workers' compensation insurers where the amount returned to the...
• SlipA preliminary document or memorandum that outlines the essential terms and conditions of an insurance...
• Small deductible planA workers' compensation insurance program where the employer assumes responsibility for a predetermined...
• Small quantity generatorA facility that generates between 100 kilograms and 1,000 kilograms of hazardous waste per month, as defined...
• Smart contractA self-executing contract with the terms of the agreement directly written into lines of code, stored and...
• Social engineeringThe use of psychological manipulation to trick individuals into divulging confidential information or...
• Social inflationThe increase in insurance claim costs that exceeds general economic inflation, driven by societal factors...
• Society of Professional Benefit Administrators (SPBA)A national trade association representing third-party administrators (TPAs) and other firms that manage...
• Soft marketA phase in the insurance cycle characterized by abundant underwriting capacity, intense competition among...
• Soft targetA person, location, or facility that is relatively unprotected or vulnerable to a physical attack, such as...
• SolicitorAn individual authorized to sell insurance policies on behalf of an agent or broker, but who does not have...
• Solid (perimeter) foundation wallsWalls that are used as a means of elevating a building in A Zones and that must contain sufficient openings...
• Solvency marginThe excess of an insurer's assets over its liabilities, representing the capital available to absorb...
• Solvency ratioA financial metric that measures an insurer's ability to meet its long-term financial obligations, calculated...
• Sophisticated insuredA policyholder possessing extensive knowledge and experience in insurance matters, often with dedicated risk...
• SpammingThe unsolicited distribution of large volumes of electronic messages, often commercial in nature, to a wide...
• Spearin doctrineA legal principle in construction contracts stating that when an owner provides a contractor with plans and...
• Special acceptanceThe process by which an underwriter agrees to provide coverage for a risk that falls outside the standard...
• Special causes of loss formAn insurance form that provides coverage for direct physical loss or damage to insured property from any...
• Special crime insuranceInsurance for kidnap, ransom and extortion exposures, together with related risks such as hijack, wrongful...
• Special damagesMonetary compensation awarded in a lawsuit for specific, quantifiable financial losses incurred by the...
• Special employerAn entity that temporarily directs the work of an employee who is primarily employed by another company...
• Special flood hazard area1. An area having special flood, mudflow or flood-related erosion hazards and shown on a Flood Hazard...
• Special Flood Hazard Area (SFHA), see Special flood hazard area
• Special investigative unit (SIU)A dedicated team within an insurance company responsible for detecting, investigating, and deterring...
• Special litigation committee (SLC)An independent committee formed by a corporation's board of directors to investigate shareholder derivative...
• Special mobile equipmentVehicles or machinery designed for off-road use or for specific tasks at a job site, rather than for general...
• Special mortality tableA statistical table that presents mortality rates for a specific group of individuals whose life expectancies...
• Special perilsA type of property insurance coverage that protects against all causes of loss unless specifically excluded...
• Special personal auto policy (SPAP)An Insurance Services Office personal auto form, numbered PP 90 01, written for driving exposures that fall...
• Special risksUnusual or unique exposures to loss that fall outside the scope of standard insurance policies due to their...
• Special waiverAn agreement by an insurer to forgo a specific right or condition within an insurance policy, often in...
• Specialty risksUnique or complex exposures that fall outside the scope of standard property and casualty insurance policies...
• Specific excess insuranceAn excess insurance form that reimburses a self-insured employer or plan sponsor for any single claim or...
• Specific loss limitA maximum amount an insurer will pay for any single loss event or for a particular type of loss under an...
• Specific ratingA method of determining an insurance premium for a particular risk by individually evaluating its unique...
• Specifications (SPECS)Detailed descriptions of the desired insurance coverage, terms, conditions, and limits prepared by a risk...
• Specified causes of loss coverageA type of property insurance coverage that only protects against losses caused by a list of explicitly named...
• Specified holderAn individual who owns a direct or indirect interest in a small insurance company electing section 831(b) tax...
• Specified perils coverageProperty insurance that provides protection only for losses resulting from a list of explicitly defined...
• Speculative riskA type of risk that involves both the possibility of gain and the possibility of loss, as opposed to pure...
• Speed to marketThe rate at which an insurer can develop a new insurance product, secure regulatory approval, and launch it...
• Spent fuelNuclear fuel assemblies that have been removed from a nuclear reactor after undergoing irradiation. These...
• Split dollar plansAn arrangement, not a type of policy, where an employer and an employee share the costs and benefits of a...
• Split levelA foundation with a vertical offset in the floor framing on either side of a common wall.
• Split limitsA method of expressing liability coverage amounts in an auto insurance policy, typically shown as three...
• SponsorAn entity that establishes and funds an employee benefit plan, a retirement plan or a captive insurance...
• Sponsored captiveAn insurance company created by a sponsor, such as an insurer or a consulting firm, that allows multiple...
• Spousal coverageAn extension of a Directors and Officers (D&O) liability insurance policy that provides protection for the...
• Spousal coverage extensionA provision in a group health or benefits plan that allows an employee to enroll their legal spouse for...
• Spread loss reinsuranceA form of finite reinsurance in which the reinsurer covers losses over a multi-year period in exchange for...
• Spread of riskThe fundamental insurance principle of distributing potential losses among a large number of policyholders...
• Sprinkler leakage coverage (SL)Property insurance coverage that protects against direct physical loss or damage caused by the accidental...
• SpywareMalicious software designed to secretly collect information about a user's computer activities without their...
• SR-22A certificate of financial responsibility required by some state motor vehicle departments for drivers who...
• Stabilization reserveA fund established by an insurer to absorb fluctuations in claims experience, particularly for lines of...
• StackingThe practice of combining the limits of liability from multiple insurance policies or multiple coverages...
• Staff model health maintenance organizationA type of Health Maintenance Organization (HMO) where the physicians and other healthcare professionals are...
• Staff privilegesThe authorization granted by a hospital or other healthcare facility to a medical professional, such as a...
• Staff underwriterAn employee of an insurance company who evaluates applications for insurance coverage, assesses risks, and...
• Stair steppingA claims reserving practice in which the reserve on a known claim is raised in small steps over successive...
• Stamp dutyA tax levied by governments on certain legal documents, including insurance policies, as a condition for...
• Stand-alone excess policyAn excess liability policy written on its own complete form, with its own insuring agreement, definitions...
• Stand-alone terrorism coverageAn insurance policy purchased separately from standard property or casualty policies to provide protection...
• Standard deviationA statistical measure that quantifies the amount of variation or dispersion of a set of data values around...
• Standard exceptionsClassifications for occupations found in many kinds of businesses, mainly clerical office employees, clerical...
• Standard fire policy jurisdictions (SFP)States whose insurance laws require that property insurance policies include, or be at least as favorable as...
• Standard Flood Insurance Policy1. • Dwelling Form. The policy form used to insure a building designed for use as a residence for no more...
• Standard form or policyA pre-printed insurance contract with standardized wording, terms, and conditions, developed by an insurer or...
• Standard Industrial Classification (SIC)A system used by the U.S. government to classify businesses by industry for statistical purposes. This...
• Standard marketThe segment of the insurance industry where insurers offer coverage to risks that meet their typical...
• Standard premiumThe premium produced by applying manual rates to a policy's exposure base and then the experience rating...
• Standard Property PolicyA basic insurance contract designed to cover direct physical loss or damage to property from a limited set of...
• Standby assistanceA pre-arranged agreement for support or resources that can be activated in the event of a crisis or...
• Stare decisisA legal principle requiring courts to follow precedents established by previous judicial decisions when...
• Start of construction1. For other than new construction or substantial improvements, under the Coastal Barrier Resources Act...
• State average weekly wage (SAWW)The average weekly earnings of workers in a particular state, calculated and published by state labor...
• State Emergency Response Commission (SERC)A state-level body responsible for implementing federal emergency planning and community right-to-know...
• State fundsGovernment-operated entities that provide workers' compensation insurance coverage within a specific state...
• State implementation plans (SIP)Documents developed by states under the Clean Air Act to outline how they will achieve and maintain national...
• Static risk modelingA method of assessing risk that evaluates potential losses based on current conditions and historical data...
• Statistical codesNumerical or alphanumeric identifiers assigned to insurance policies, claims, and other transactions to...
• Statistical methodA systematic approach involving the collection, analysis, interpretation, presentation, and organization of...
• StatusThe nature of an employee's job duties, which establishes their eligibility for benefits under a specific...
• Statute of fraudsA legal principle requiring certain types of contracts to be in writing and signed by the parties to be...
• Statute of limitationsA law that sets the maximum time period within which legal proceedings, such as filing a lawsuit or making an...
• Statute of reposeA law that sets an absolute deadline for bringing a lawsuit, regardless of when the injury or damage was...
• Statutory accounting principles (SAP)A set of accounting rules prescribed by state insurance regulators for the preparation of financial...
• Statutory capitalThe minimum amount of financial resources an insurance company must hold to meet its obligations to...
• Statutory coveragesThe minimum benefits that an employer is required by law to provide to injured employees under a state's...
• Statutory inspectionsMandatory examinations of equipment, premises, or processes required by law or regulation to verify...
• Statutory insuranceInsurance coverage mandated by law, requiring individuals or businesses to carry specific types and amounts...
• Statutory lawWritten law enacted by a legislative body, such as a parliament or congress, as opposed to common law or...
• Stay of proceedingsA temporary halt or suspension of legal actions or court proceedings, ordered by a court or by agreement of...
• Step rate premiumAn insurance premium structure where the cost of coverage increases at predetermined intervals, typically...
• Stevedores legal liability coverageA marine liability coverage for stevedoring contractors that pays for their legal liability to others arising...
• StevedoringThe process of loading and unloading cargo from ships, barges, and other vessels in a port or harbor. This...
• StipulationA condition or requirement specified in an insurance policy or legal agreement that must be met by one or...
• Stochastic dominanceA method for ranking uncertain outcomes or investment prospects by comparing their cumulative distribution...
• StockMerchandise held in storage or for sale, raw materials and in-process or finished goods, including supplies...
• Stock captiveA type of captive insurance company structured as a stock corporation, owned by its shareholders, which are...
• Stock companyAn insurance company that is owned by its stockholders, who invest capital and expect to receive a return on...
• Stock optionA contractual right, but not an obligation, to buy or sell a specified number of shares of a company's stock...
• Stock option claimsLegal actions brought by employees against their employers concerning the granting, vesting, exercise, or...
• Stop gap endorsementAn addition to a general liability insurance policy that provides coverage for employer's liability in states...
• Stop lossA provision in an insurance policy or reinsurance treaty that limits the total amount of losses an insured or...
• Stop-loss reinsurance (SLR)A form of reinsurance that protects an insurer from aggregate losses exceeding a predetermined amount over a...
• StorageAll new construction and substantial improvements must have any fully enclosed area below the lowest floor...
• Storekeepers Broad FormA package insurance policy designed for smaller retail businesses, combining multiple property and liability...
• Storekeepers burglary and robbery policyA specialized insurance policy designed for small retail businesses to protect against losses from burglary...
• Storm surgeAn abnormal rise in water level generated by a storm, over and above the predicted astronomical tide. This...
• Stowers DoctrineA legal doctrine, originating in Texas, that imposes a duty on liability insurers to accept reasonable...
• Straight life policyA whole life insurance contract requiring premium payments for the entire duration of the insured's life...
• Strategic lawsuits against public participation (SLAPP)A civil complaint or counterclaim filed against individuals or organizations who speak out on an issue of...
• Strategic riskThe potential for losses arising from flawed business strategies, poor decision-making, or a failure to adapt...
• Stress testingA risk management technique that evaluates the potential impact of extreme but plausible adverse scenarios on...
• Strict liabilityA legal doctrine where a party can be held responsible for damages or injuries without the need to prove...
• Strike coverageInsurance protection for businesses against financial losses incurred due to labor disputes, such as strikes...
• Strike priceThe fixed price at which the owner of an option contract can buy (for a call option) or sell (for a put...
• Strikes, riots, and civil commotion (SRCC) risksThe potential for financial loss or damage to property resulting from organized labor disputes, public...
• Strikes, riots, and civil commotion warranty (SR&CC)A clause in an insurance policy that specifies conditions or exclusions related to losses arising from...
• Strike-through clauseA provision in a reinsurance treaty that obligates the reinsurer to pay the original policyholder directly in...
• Structural risk modeling methodsQuantitative techniques used to assess and manage credit risk by modeling the financial structure of a firm...
• Structurea. A walled and roofed building, other than a gas or liquid storage tank, principally above ground and...
• Structured financeA complex financial instrument or arrangement tailored to meet specific risk and return objectives that are...
• Structured settlementA financial arrangement arising from a legal settlement where a claimant receives compensation as a series of...
• SubbrokerAn individual or entity that acts as an intermediary between a client and a primary insurance broker, rather...
• Subcontractor exceptionAn exception to the 'your work' exclusion in a commercial general liability policy. The exclusion removes...
• SubdivisionA community must review subdivision proposals and other proposed new development including manufactured home...
• Subgrade crawlspaceA crawlspace foundation where the subgrade under-floor area is no more than 5 feet below the top of the...
• Subguard insuranceA specialized insurance product designed to protect general contractors from financial losses caused by...
• Subject businessThe specific insurance policies, risks, or premiums that are being considered for reinsurance or are included...
• Subject of insuranceThe person, property, or liability that is covered by an insurance policy. It represents the specific entity...
• Subject policiesThe underlying insurance contracts that are covered by a reinsurance agreement. These are the original...
• Subject premiumThe portion of a policy's total premium that is used as the basis for calculating other costs, such as...
• Subjective symptomsSensations or experiences reported by an individual that cannot be objectively measured or observed by...
• SublimitA restriction within an insurance policy that caps the maximum amount payable for a specific type of loss or...
• SubmissionThe formal presentation of an insurance application and supporting documentation by a broker or agent to an...
• Submit-for-RateAn application for flood insurance on a building for which no risk rate is published in the NFIP Flood...
• Submit-to-RateThe insurance premium rate tables used for the National Flood Insurance Program (NFIP) do not cover cases...
• Subpart F incomeA category of passive or easily movable income earned by a controlled foreign corporation (CFC) that is...
• SubpoenaA legal writ issued by a court or administrative agency compelling a person to appear at a specific time and...
• Subpoena duces tecumA legal writ issued by a court or administrative agency that compels an individual or entity to produce...
• Subprime loansLoans offered at rates above prime to individuals who do not qualify for conventional market-rate loans due...
• SubrogationAn insurer's right to pursue a third party that caused a loss for which the insurer has already paid a claim...
• Subrogation provisionA clause within an insurance policy that explicitly grants the insurer the right to subrogation. It outlines...
• SubsidenceThe gradual sinking or settling of the ground surface, often caused by natural geological processes, mining...
• Subsidized premium rateA rate charged to a group of policies that results in aggregate premiums insufficient to pay anticipated...
• SubstandardA risk classification for an applicant or property that has a greater-than-average potential for loss, making...
• Substantially damaged buildingA building that has incurred damage of any origin whereby the cost of restoring the building to its before...
• Substantially damaged propertyEither a substantially damaged building or the contents within a substantially damaged building, or both.
• Substantially improved building1. A building that has undergone reconstruction, rehabilitation, addition, or other improvement, the cost of...
• Substantially improved propertyEither a substantially improved building or the contents within a substantially improved building, or both.
• Substitute noticeAn alternative way of telling people about a data breach when direct written or electronic notice is...
• Substitute physician coverage endorsementAn addition to a medical malpractice insurance policy that extends coverage to another physician who...
• Successor life riderAn optional provision in a life insurance policy that allows for a new insured to be designated upon the...
• "Sudden and accidental"Policy language in liability insurance that limits coverage for pollution or other environmental damage to...
• Sue and labor clauseA provision in marine insurance policies that obligates the insured to take reasonable steps to prevent or...
• Suicide provisionA clause within a life insurance policy that excludes or limits the death benefit if the insured's death...
• Summary judgmentA court's final decision in a civil case, such as an insurance coverage dispute, that resolves the lawsuit...
• SummonsA legal document issued by a court that notifies a defendant they are being sued and must appear in court or...
• Sump pumpA device installed in the lowest part of a basement or crawl space to remove water that accumulates in a sump...
• SuperfundA federal program established by the United States government to clean up sites contaminated with hazardous...
• Superseded surety riderAn endorsement attached to a new surety bond that extends coverage to acts or omissions that occurred under a...
• Supplemental employee retirement plan (SERP)A nonqualified deferred compensation plan that provides retirement benefits to key executives beyond the...
• Supplemental extended reporting period (SERP)An optional extension of coverage available under a claims-made liability insurance policy, allowing the...
• Supplementary contractAn agreement between a life insurance company and a beneficiary, or sometimes the policyholder, for the...
• Supplementary paymentsAdditional payments made by an insurer under a liability policy that are separate from and in addition to the...
• SurchargeAn additional charge or premium added to the standard insurance rate. This extra cost is typically imposed...
• Surcharge (Insurance), see Surcharge
• SuretyA party that guarantees the performance of an obligation by another party, known as the principal, to a third...
• Surety bondA three-party agreement where one party, the surety, guarantees to a second party, the obligee, that a third...
• SurplusThe amount by which an insurer's assets exceed its liabilities, representing the company's financial strength...
• Surplus debentureA type of debt instrument issued by an insurance company that is subordinate to policyholder obligations and...
• Surplus lineA type of insurance coverage for risks that authorized or admitted insurers in a state are unwilling or...
• Surplus lines brokerA licensed insurance broker authorized to place coverage with non-admitted insurers for risks that cannot be...
• Surplus lines insuranceCoverage for risks that authorized or admitted insurers in a state are unwilling or unable to underwrite due...
• Surplus notesUnsecured debt instruments issued by insurance companies that are treated as statutory surplus for regulatory...
• Surplus reinsuranceA form of proportional reinsurance where the ceding insurer retains a fixed amount of liability for each...
• Surplus reliefA form of reinsurance that allows a ceding insurer to increase its statutory surplus, which is the excess of...
• Surplus shareThe portion of a risk that a reinsurer assumes in a surplus reinsurance treaty, representing the amount...
• SurrenderThe act of terminating a life insurance policy or annuity contract before its maturity date in exchange for...
• SurveyAn inspection and assessment of property, operations, or a specific risk to identify potential hazards...
• Survival actionA legal claim brought by the estate of a deceased person to recover damages for the pain, suffering, and...
• Survivorship benefitsPayments made to a surviving spouse or other designated beneficiaries upon the death of an insured...
• Suspension1. FEMA's removal of an NFIP participating community from the program because the community has not enacted...
• Suspension of coverage endorsementAn auto policy endorsement that suspends liability and collision coverage on a vehicle while it is laid up or...
• SwapA derivative contract between two parties to exchange financial instruments, cash flows, or payments over a...
• SwaptionAn option contract granting the holder the choice to enter into a specified swap agreement with a...
• Swimming poolsA pool adjacent to an elevated V Zone building may be constructed at grade or elevated so that the lowest...
• Swing plansA type of insurance program where the premium adjusts retrospectively based on the actual loss experience of...
• SyndicateA group of insurers or reinsurers that pool their capital and expertise to underwrite large or complex risks...
• System safety approachA structured methodology for identifying, analyzing, and mitigating hazards throughout the lifecycle of a...
• Systemic discriminationDiscriminatory practices embedded within the policies, procedures, or culture of an organization, leading to...
• Systemically important financial institution (SIFI)A financial institution whose failure could threaten the stability of the wider financial system, and which...
• Systems performance insuranceA specialized insurance policy that covers financial losses resulting from the failure of a technological...

304 of 3,708 terms in Insurance and risk management terminology (MLC-0106). Request the full dataset.