Glossary

Stochastic dominance refers to the use of historical empirical data to support future projections in terms of probability. It is a form of stochastic ordering.

Stock captive describes a special purpose limited liability insurer that raises capital by selling shares to shareholders and is controlled by its shareholders.

The term stock company refers to an insurance company that has, in addition to surplus and reserve funds, a capital fund paid in by stockholders.

Stock option is a right to purchase shares of stock in a corporation at a specified price, usually, but not always, on or before a specified date.

Stock option claims involve allegations by current or former employees that they have been wrongfully deprived of monies due from stock option grants provided by the organization.

Stop-loss reinsurance is an agreement whereby a reinsurer assumes on a per-loss basis all loss amounts of the reinsured, subject to the policy limit, in excess of a stated amount.

A stop-gap endorsement is an endorsement that is primarily used to provide employers liability coverage for work-related injuries arising out of exposures in monopolistic fund states (fund workers compensation policies do not provide employers liability coverage).

Stop loss is a form of reinsurance under which a reinsurer is liable for all losses, regardless of size, that occur after a specified loss ratio or total dollar amount of losses has been reached

Storekeepers Broad Form is commercial crime coverage plan 3 of the Insurance Services Office, Inc. (ISO), portfolio. Coverage for various forms of crimes, including employee dishonesty, is provided under this form.

A storekeepers burglary and robbery policy covers loss of property other than money and securities by robbery and burglary.