Phantom Stock Plans
Plans that are similar to stock appreciation rights (SARS) in that an employee is granted a contractual right by the employer to a stipulated number of units in the business, which is really a percentage of the business. As the value of the business increases, the value of these units increase. At the end of a stipulated period of time, the employee either can receive additional income based on the appreciation of the value of these units or can convert these units into an equity ownership in the business. Thus, the employee has a vested interest in the business increasing in value.
Popular Insurance Terms
Rating method for commercial fire insurance according to a predetermined schedule. Published by A. F. Dean in 1902, this method was the first comprehensive qualitative analysis procedure to ...
Maximum that an insurance company can underwrite. The limits of coverage that a property and casualty company can underwrite are determined by its retained earnings and invested capital. ...
Retirement plan for an individual based on a single contract with a benefit based on current earnings, as if they will remain static until normal retirement age. As the earnings of the plan ...
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Business involved in buying and selling securities and mutual funds. ...
Endowment period of time, in life insurance, at which the face amount of the policy is payable to the insured. ...
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