Rabbi Trust
Definition of "Rabbi trust"
Trust named from a private-letter ruling by the IRS that involved a trust established by a Jewish congregation on behalf of its rabbi. The operation of the trust involves the employer's making contributions to the trust that are irrevocable. An independent trustee has control of the trust and must pay benefits from it if a stipulated event occurs, such as the death, disability, or retirement of the employee. If the employer becomes bankrupt or insolvent, the funds held in the trust are subject to the claims of the employer's creditors. The employer cannot take income tax deductions for its contributions to the trust until the funds in the trust are actually distributed to the employee.
Popular Insurance Terms
Sale of life insurance policies through vending machines. This method of distribution is generally limited to travel accident insurance, supplemental health or disability policies, or life ...
Coverage that exceeds the normal insurance capacity of an insurer or reinsurer. ...
Measurement of the response of the cash flow of an insurance company to various interest rate scenarios; for example, how rising interest rates will affect the number of life insurance ...
Coverage for damage due to peril! of war, usually written as part of an ocean marine insurance policy. ...
Sum it takes to replace an insured's damaged or destroyed property with one of like kind and quality, equivalent to the actual cash value, minus physical depreciation (fair wear and tear) ...
Historic insignia representing evidence of coverage placed on property insured by a particular insurance company. If the property on fire did not have the company's fire mark, its private ...
All insured losses paid in full. ...
Policy provision designed to restore an insured to his or her original financial position after a loss. The insured should neither profit nor be put at a monetary disadvantage by incurring ...
Insurance facility composed of many different syndicates, each specializing in a particular risk; for example, hull risks. Lloyd's provides coverage for primary jumbo risks as well as ...
Have a question or comment?
We're here to help.