Glossary

Surplus share is a form of pro rata reinsurance in which the primary insurer cedes only the "surplus" liability above a specified retention.

Surrender involves withdrawing full cash value and surrendering a policy to the life insurance company.

A survey is shortened terminology describing an insurance inspector's or surveyor's study of a risk used for underwriting purposes.

A survival action is a claim made by the estate of the decedent in conjunction with a wrongful death claim, alleging damages sustained by the decedent between the time of injury until their actual death.

Survivorship benefits are the benefits paid to the survivor of the deceased, whether it be under a pension plan, social security plan, or a life insurance policy.

A commercial and personal auto coverage endorsement, the Suspension of Coverage Endorsement (CA 02 04, PP 02 01) suspends certain coverages for specified vehicles when the vehicles will not be used for a period of 30 days or more.

The Sutton Rule is named for a 1975 Oklahoma case where a tenant's 10-year-old son, while using his chemistry set, damaged a rented home owned by the Suttons. The Suttons' insurer paid for the damage and then attempted to subrogate against the tenant. The court ruled that subrogation was not permitted because the tenant, absent an express agreement to the contrary, is an implied coinsured under the landlord's policy. Part of the rationale is that the tenant pays the premium indirectly through the payment of rent.

A swap is an agreement to exchange or to net payments at one or more times based on the actual or expected price, yield, level, performance, or value of one or more underlying interests.

Swaption is the option to purchase or sell a swap at a given price and time or at a series of prices and times.

Swing plans are provisions in a reinsurance contract that provide that, as losses covered by the insurance contract increase, so does the premium charged.