Guaranteed Investment Contract (gic)
Definition of "Guaranteed investment contract (gic)"
Institutional investment sold by life insurance companies that guarantees principal and offers withdrawal flexibility. This conservative investment, which can be used with a corporate qualified plan, became one of the most popular choices in such salary reduction plans as the 401 (k) plan. Many of these plans offered employees three choices for depositing their pre-tax retirement dollars: a stock fund, a bond fund, and a GIC. By 1987, about 40% of employees had elected GIC investments.
Popular Insurance Terms
Process whereby a ceding company resumes the insuring of a portfolio of insurance policies which it had previously CEDED to a REINSURER. ...
Policy similar to that of an individual universal life insurance policy except that the coverage is provided (up to a limit) without the requirement of the submission of evidence of ...
Means of borrowing at no charge by a policyowner under universal life insurance policies. ...
Money the policyowner is entitled to receive from the insurance company upon surrendering a life insurance policy with cash value. The sum is the cash value stated in the money the ...
Arrangement by which two or more employers form a coalition to offer a health plan to their employees. The purpose of the coalition is not to purchase health insurance. The MEWAs can be ...
Probability of loss upon which a basic premium rate is calculated. ...
Technique of loss control and reduction of losses in insurance. Supporters of this method believe that the safety attitudes of individuals determine the safety precautions they take. The ...
Insurance for accountants covering liability lawsuits arising from their professional activities. For example, an investor bases a buying decision on the balance sheet of a company's annual ...
Method of calculating the primary insurance amount (PIA) for Social Security benefits. Employees' covered monthly earnings are adjusted to reflect changes in the national average annual ...
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