Investment Company Act Of 1940
Definition of "Investment company act of 1940"
Act that regulates the variable dollar insurance products (equity related) sold by insurance companies. The act includes regulations that stipulate: the variable dollar insurance products must be funded through a separate account (segregated from the other investment accounts of the insurance company); benefits and cash values must vary in tandem with the investment returns of this separate account; mortality and expense fluctuations (above the maximum chargeable stipulated in the policy) must be borne by the insurance company; maximum sales load; and periodic financial reports must be sent to the policy owner.
Popular Insurance Terms
Duration of a policy. Property and casualty coverages are usually written for one year, although a personal automobile policy can be for six months. Life insurance can be written on a term ...
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Coverage for goods in transit and the vehicles of transportation on waterways, land, and air. ...
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Classification at death of all pension plans, profit-sharing plans, individual retirement accounts (IRAS), annuities, and installment payments to the extent to which the deceased was ...
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