What does Separate Account mean? Read on to discover the definition & meaning of the term Separate Account - to help you better understand the language used in insurance policies.
A fund held by a life insurance company that is maintained separately from the insurer's general assets. It is generally used for investing pension assets or variable annuity holdings in common stocks. In the event of insolvency of the insurer, separate accounts may be protected from claims by creditors and other insureds.
More Insurance Terms And Definitions
The Merriam-Webster Dictionary defines insurance as:
b: Coverage by contract whereby one party undertakes to indemnify or guarantee another against loss by a specified contingency or peril.
c: The sum for which something is insured.
We hope the you have a better understanding of the meaning of Separate Account. If you are looking for the meanings of other important insurance terms and their definitions, just click on the letter below to find the words & concepts you are looking for: