Glossary

Safe depository coverage provides coverage for any loss to property located in any safe or box leased to a customer of the insured, other than a financial institution, within the safe deposit vaults located within any of the insured's offices. It is commercial crime coverage plan 8 of the Insurance Services Office, Inc. (ISO), portfolio. There are two optional coverage forms. Coverage form M (CR 00 14) applies only to the extent the insured is legally liable. Coverage form N (CR 00 15) covers loss of customers' property regardless of liability. Financial institutions can obtain this coverage through the combined safe depository policy promulgated by the Surety Association of America (SAA) (Form CSD-1).

The Saffir-Simpson scale is a rating device used by hurricane forecasters to gauge a hurricane's present intensity. The hurricane's wind speed is the determining factor in the scale, with Category 5 having the highest and most damaging wind speed and Category 1 having the lowest and least damaging wind speed. This scale provides an indicator of the potential property damage and flooding expected along the coast from a hurricane landfall.

Sales in an insurance context is the exposure base in commercial general liability insurance for insureds in the manufacturing/processing or mercantile business classifications. Gross sales as an exposure base is defined as "the gross amount charged by the named insured, concessionaires of the named insured or by others trading under the insured's name for all goods or products, sold or distributed; operations performed during the policy period; rentals; and dues or fees."

Salesmen's samples coverage is inland marine insurance covering samples carried by salespersons.

A sale bond is a real estate transaction bond used as a guaranty when a fiduciary makes a sale.

The Saline Substances Contamination Endorsement (CG 22 47) is an Insurance Services Office, Inc. (ISO), general liability endorsement excluding coverage for liability associated with saline substances used in oil and gas drilling operations. The term "saline substances" refers to drilling "mud" or fluid and saltwater pumped into a well to stimulate oil recovery.

Salvage in an insurance context is property after it has been partially damaged by an insured peril such as a fire. As a verb, it means to save endangered property and to protect damaged property from further loss.

Salvage value is the amount for which an asset can be sold at the end of its useful life. In insurance circles, this term commonly refers to the scrap value of damaged property. In property insurance, salvage value (e.g., scrap value) will be subtracted from any loss settlement if the insured retains the damaged property. In extra expense coverage, the salvage value of property purchased for temporary use while repairs are made will be deducted in determining the amount of loss recovery.

The Sarbanes-Oxley Act (SARBOX, SOX, SOx) of 2002 is a sweeping corporate financial reform bill passed and signed into law in July 2002. The Act is a response to a number of accounting scandals involving several high-profile public corporations. The reforms promulgated by SOX are an attempt to prevent similar abuses in the future and to restore investor confidence that suffered significantly as a result of these scandals. The key provisions include requirements that chief executive and chief financial officers certify their 10-Q and 10-K reports and that all audit committee members be independent. In addition, the law bans personal loans to executive officers and directors, prohibits insider trades during 401(k) blackout periods, requires accelerated reporting of stock trades by insiders, and mandates more detailed disclosure of off-balance-sheet transactions. Finally, the law requires that chief executive and financial officers return any profits they obtained as a result of material misstatements in financial documents and requires attorneys working with offending corporations to report violations of SOX.

Savings bank life insurance is life insurance that is permitted to be sold by mutual savings banks in certain states such as New York, Connecticut, and Massachusetts.