Glossary

A submission refers to a proposal for insurance submitted to an underwriter. The term implies more than simply a completed application unless the application contains all the information needed by the underwriter.

Subpart F income is a definition of income in the US Tax Code as underwriting and investment income earned by an offshore insurer/reinsurer writing primarily US risks. The definition has been extended to almost all the income earned by offshore insurers/reinsurers, even if not strictly on US risks.

A subpoena is a command to appear at a certain time and place to give testimony.

A subpoena duces tecum is a form of subpoena requiring not only the appearance of the subpoenaed party but also that the subpoenaed party produce books, papers, and other items.

Subprime loans are loans on residential real estate carrying interest rates that are substantially above the prime mortgage loan rate. Subprime loans are made to borrowers who pose a high credit risk, because they have either a low credit score or a high debt-to-income ratio. Often, subprime loans carry relatively low interest rates during the first 2 to 3 years of the agreement but then increase sharply thereafter, which, in some cases, causes the monthly payment to double or even triple. Beginning in 2006, falling national real estate prices combined with "resets" to higher monthly payment amounts, triggered numerous subprime mortgage loan defaults by borrowers. This, in turn, caused huge earnings losses for the banks that made subprime loans. Ultimately, the directors and officers of these banks were hit with literally hundreds of class action lawsuits by investors, who alleged that the directors and officers had been negligent in making such loans.

Subrogation is the assignment to an insurer by terms of the policy or by law, after payment of a loss, of the rights of the insured to recover the amount of the loss from one legally liable for it.

A subrogation provision is a provision in an insurance policy addressing whether the insured has the right to waive its recovery rights against another party that may have been responsible for loss covered under the policy. In standard commercial policies, the subrogation provision is called "Transfer of Rights of Recovery Against Others to Us."

Subsidence is a sinking of filled, graded, or undermined earth or soil to its original or natural elevation. Faulty site preparation can result in subsidence claims against contractors, and such claims are often the subject of subsidence exclusions.

Substandard in an insurance context refers to "less than standard" risk. For example, substandard auto insurance is insurance written for drivers with poor driving records. For obvious reasons, substandard insurance premiums are typically higher and coverage terms more restrictive than those for insurance written on standard risks.

Substitute notice is a type of general notification communicated via website, media, and email that entities may be permitted to substitute for individual notices to affected consumers in the event of a data breach that results in their personal information being exposed. Essentially, substitute notice is less stringent, almost certainly less costly, and can be given in a more "general" fashion rather than requiring a breached company to notify each affected consumer individually. Many state data breach notification laws allow substitute notice to consumers if certain conditions are met regarding the data breach. The most common of these conditions are (1) when the expected cost of notifying individual consumers would exceed a certain threshold, (2) when there is a lack of sufficient contact information for affected consumers, or (3) when the number of affected consumers exceeds a certain threshold. If any one of these conditions is met, substitute notice may be provided, which typically entails all the following: (1) notice on the breached company's website, (2) conspicuous notice in print and broadcast media, and (3) emails to affected consumers. While more states have allowed substitute notice provisions in their laws over time, a significant number of state data breach notification laws still do not contain provisions of this sort.