Glossary

The "say-on-pay" provision is a key provision within the Dodd-Frank Act that requires publicly held companies to submit executive compensation plans to nonbinding, advisory votes by shareholders every 3 years. Since the say-on-pay provision is purely advisory, companies are not required to modify their compensation packages based on shareholder votes. Moreover, companies that choose to disregard shareholder feedback can do so with virtual impunity because the law does not specify any penalties if companies reject such votes. Since enactment of the "say-on-pay" provision, only a small percentage of "no" votes by shareholders have been recorded. And even among companies that failed to engender changes in executive compensation packages (in response to "no" votes), meaningful consequences from a liability standpoint have not arisen. One tactic adopted by plaintiffs' attorneys is to bring lawsuits even before say-on-pay votes are actually held. Instead of challenging the size of executive compensation packages, these suits allege that firms failed to provide shareholders with adequate information on which they can cast informed votes regarding executive pay packages.

A schedule in an insurance context is a list of an insured's locations or property such as computers, mobile equipment, or vehicles. It can also refer to a list of primary or underlying insurance.

Scheduled limits are separate property insurance limits that apply to each type of covered property interest (building, personal property, business income, etc.) at each covered location. This is in contrast to a blanket limit, which is a single limit of insurance that applies over more than one location, more than one type of property, or both.

Scheduled loss refers to a permanent partial disability that is rated and paid based on a schedule in the state statute. Unscheduled disabilities are rated based on subjective estimates of permanent disability.

A schedule bond is a fidelity bond in which covered persons (usually employees) are listed by name with a corresponding coverage limit for each individual listed.

A "Schedule P" reserve is a liability loss reserve relating to the business written by a property-casualty (P&C) insurer that must be shown on Schedule P of the convention blanks required by the National Association of Insurance Commissioners (NAIC). The purpose of the reserve is to allow for an evaluation of the financial strength of the insurer over a period of time as losses develop relative to earned premium.

Schedule rating refers to modification of manual rates either upward (debits) or downward (credits) to reflect the individual risk characteristics of the subject of insurance.

School board liability coverage is a type of directors and officers liability policy that protects school board members and, if so arranged, employees against claims alleging errors and omissions (E&O) in performing their duties. It is also known as school leaders E&O coverage.

Screening risk refers to the risk that a proposal for foreign investment will not be accepted following a government review (screening) of it. The process of undergoing screening can be quite time-consuming and costly, and screening risk insurance provides compensation for at least some of those costs in the event a proposal is rejected.

Sears v. Commissioner is one of three cases decided in January 1991 in which premiums paid to wholly owned insurance companies were deemed deductible expenses. Substantial unrelated business, among other tests, was critical. [96 T.C. 61 (1991, aff'd in part , rev'd in part , 972 F.2d 858 (7th Cir. 1992).]