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.
We hope the you have a better understanding of the meaning of Separate Account.