Glossary

Many auto insurance policies use the split limits approach, which combines the per person and the per occurrence to display the automobile liability limits that apply to an accident.

A sponsor is a legal entity that contributes statutory capital to form a sponsored or association captive.

A sponsored captive is a single-owner or group-owned rental captive, typically formed as a segregated cell company.

Spousal coverage is a provision in directors and officers (D&O) liability policies extending coverage to an insured's spouse.

The spousal coverage extension is the wording in an insurance policy that confers "insured" status upon spouses of "insureds" under that policy.

Spread loss reinsurance is a form of reinsurance under which premiums are paid during good years to build up a fund from which losses are recovered in bad years.

Spread of risk refers to the pooling of risks from more than one source.

Spread sectors are nongovernmental fixed income investments with higher yields at greater risk than governmental investments.

Sprinkler leakage coverage is for property damage caused by the accidental discharge or leakage of water or other substances from automatic sprinkler systems.

Spyware is a generic term typically describing software that records, without the knowledge of the computer owner, information about the user, including browser habits or other information, and then transmits that information across the Internet.