What does General Account mean? Read on to discover the definition & meaning of the term General Account - to help you better understand the language used in insurance policies.
A general account is the account in which an insurance company deposits the premiums it collected from the policies it underwrites. It is worth noting that there is no collateral to a specific policy. Rather, a general account treats all the funds as premiums in aggregate. In addition, the insurance company also uses the general account to fund daily operations.
We hope the you have a better understanding of the meaning of General Account.