A-B-C-D-E-F-G-H-I-J-K-L-M-N-O-P-Q-R-S-T-U-V-W-X-Y-Z

Second-to-Die Life Insurance:
A form of insurance, traditionally used as an estate planning tool, that pays a death benefit only upon the death of the insured who survives the longest. Its main purpose is to pay estate taxes upon the death of the second insured. Because it is based on joint life expectancy, its premium is less than the total premiums for individual policies on the same lives. This type of insurance is available in many forms, including policies with interest-rate features and flexible premiums.

Self-Administration:
Maintenance of all records and assumption of responsibility, by a group policyholder, for those covered under its insurance plan. Responsibilities include preparing the premium statement for each payment date and submitting it with a check to the insurer. The insurance company, in most instances, has the contractual prerogative to audit the policyholder's records.

Self-Insurance:
A program financed entirely by the employer for insuring employees instead of purchasing coverage from a commercial carrier.

Short-Term Disability Income Insurance:
Insurance that provides benefits only for loss from illness or disease and excludes loss from accident or injury.

Single-Premium Whole Life Insurance:
A whole life policy that provides protection for the duration of the insured's life in exchange for the payment of the total premium in one lump sum at the time of application.

SMA:
Special marketing agency

Social Security Freeze:
A long-term disability provision that guarantees that Social Security benefits will not be changed regardless of changes in the Social Security law.

SPAC:
Single premium annuity contract

SPDA:
Single premium deferred annuity

Special Risk Insurance:
Coverage for risks or hazards of a special or unusual nature.

Specified Disease Insurance:
Insurance providing an unallocated benefit, subject to a maximum amount, for expenses in connection with the treatment of specified diseases, such as cancer, poliomyelitis, encephalitis, and spinal meningitis. These policies are designed to supplement major medical policies. 

Standard Insurance:
Insurance written on the basis of regular morbidity underwriting assumptions and issued at normal rates.

Standard Provisions:
Provisions setting forth the rights and obligations of and insurers and insured persons under health insurance policies. Originally introduced in 1912, these provisions were replaced by the Uniform Policy Provisions Law (UPPL).

Standard Risk:
Person who, according to an insurer's underwriting standards, is entitled to purchase insurance without paying an extra premium or special restrictions.

State Insurance Department:
An administrative agency that implements state insurance laws and supervises (within the scope of these laws) the activities of insurers operating within the state.

State Regulation of Insurance:
The complexity and cost variations of insurance stems directly from state regulation of the industry. Unlike the securities and banking industries, the insurance industry does not have a strong federal oversight role. Instead, through the 1945 McCarran-Ferguson Act, the domestic industry faces 55 sets of overseers (the 50 states, the District of Columbia, Puerto Rico, the Virgin Islands, Guam and American Samoa). With so many different sites of regulation, and so many sources of local sales outlets for insurance policies, it’s not surprising that insurance policies are hardly the standardized commodities that you find when trading stocks or opening a bank account. This is particularly true in property/casualty coverage and less so in life insurance. Added to the maze of different products is the fact that state-based regulation means that insurers may base their rates in each state on their business profile in that state. Auto rates, for example, reflect accident and theft trends in local territories. The upshot is that there is great pricing variation along with lots of different types of policies.

Statutory Accounting:
Accounting practices prescribed by the insurance department of the insurer's state of domicile based on standards set by the National Association of Insurance Commissioners (NAIC). The principal objective of statutory accounting is to provide a framework for a conservative measurement of an insurer's surplus.

Stock Life Insurance Company:
A life insurance company owned by stockholders who share in the company's surplus earnings.

Stop-Loss Insurance:
Protection purchased by self-funded buyers against the risk of large losses or a severe adverse claim experience.

Substandard Insurance:
Insurance issued with an extra premium or special restriction to persons who do not qualify for insurance at standard rates.

Substandard Risk:
Persons who cannot meet the health requirements of a standard health insurance policy.

Survivorship Insurance:
Another name for second-to-die insurance.

SVO:
Securities valuation office, a division of NAIC