Term
| account maintenance transaction. |
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Definition
A change which an insurer makes to the
administrative records it maintains concerning an investment product and that does
not involve immediate contributions to or disbursements from the account or
immediate changes in the investment allocations for the account. Also known
as a nonfinancial transaction. |
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Term
| Actuarial Opinion and Memorandum (AOM). |
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Definition
A required, formal written statement
prepared annually by each U.S. insurance company’s appointed actuary for
submission to regulators. In the AOM, in the actuary’s opinion, the company’s
reserves adequately provide for meeting future obligations to customers, given the
assets backing the reserves. |
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Term
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Definition
A 1970 U.S. federal anti-money laundering regulation that
empowers the Treasury Department to require banks and other financial institutions to
file currency transaction reports and suspicious activity reports with the Treasury
Department upon performing specified transactions. |
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Term
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Definition
For a fixed annuity contract, the interest rate applied to a customer’s
accumulation value. |
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Term
| crediting-rate resolution. |
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Definition
An insurance company’s formal declaration of the crediting
of a specified current interest rate on a specified product. |
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Term
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Definition
For asset-liability management, a type of internal report which
measures the duration statistics of the company’s assets (investments) and liabilities
(obligations to customers) and assesses the degree of mismatch between those
duration statistics. |
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Term
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Definition
A process under which insurers must annually deliver a revised
prospectus to securities owners. |
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Term
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Definition
A transaction that involves current period contributions to or
disbursements from an investment contract or current period changes in investment
allocations for such a contract. |
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Term
| Gramm-Leach-Bliley (GLB) Act. |
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Definition
A 1999 act passed by the U.S. Congress, which
allows convergence among the traditionally separate components of the financial
services industry—banks, securities firms, and insurance companies. The GLB Act
permits financial institutions to affiliate in new ways. |
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Term
| interest crediting strategy. |
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Definition
The formulas and criteria a company uses to set the
interest rates it will credit for interest-sensitive products. |
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Term
| investment activity report. |
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Definition
A type of internal asset-liability management report that
presents the specifics of all investment transactions, including all asset purchases
and all asset dispositions through sales, prepayments, or repayments at maturity. |
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Term
| investment portfolio performance review. |
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Definition
A type of internal summary report of a
company’s investment performance in a specified period, submitted to the company’s
board of directors. |
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Term
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Definition
A reporting form that reports to the contract owner and the Internal
Revenue Service the total amount withdrawn from a financial account and the total
amount withdrawn that is subject to income tax. |
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Term
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Definition
A form that insurers provide to the Internal Revenue Service and to
individual retirement account (IRA) contract owners each year and that reports the
type of IRA, the IRA’s market value, the amount and type of contributions made to the
IRA during the tax year, and any minimum distribution required during the tax year. |
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Term
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Definition
A written document describing specific aspects of a security and of the
security’s issuer, its management, and financial condition. |
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Term
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Definition
A document that explains any material changes to a
security’s investment characteristics but omits the other information that is normally
contained in a prospectus. Also known as a sticker. |
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Term
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Definition
A 2001 U.S. federal law containing anti-money laundering
provisions that require financial institutions to (1) verify the identification of financial
account holders; (2) establish internal anti-money laundering programs that meet
specified minimum standards; (3) cooperate with other financial institutions to deter
money laundering; and (4) report suspected money laundering transactions. Also
known as the Patriot Act. |
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