What Is the Support Test? The support test is one of five tests that must be passed in order to claim someone else as a dependent for legal and tax purposes. The support test mandates that the taxpayer must have provided more than half of the prospective dependent’s living expenses during the year. Living expenses
What Does Supranational Mean? A supranational organization is a multinational union or association in which member countries cede authority and sovereignty on at least some internal matters to the group, whose decisions are binding on its members. In short, member states share in decision making on matters that will affect each country’s citizens. The EU
What Is a Surplus? A surplus describes the amount of an asset or resource that exceeds the portion that’s actively utilized. A surplus can refer to a host of different items, including income, profits, capital, and goods. In the context of inventories, a surplus describes products that remain sitting on store shelves, unpurchased. In budgetary
What Is a Surplus Spending Unit? A surplus spending unit is an economic unit with income that is greater than or equal to expenditures on consumption throughout a period. A surplus spending unit earns more than it spends on its basic needs and therefore has money left over to invest into the economy through the
What Is Surplus Lines Insurance? Surplus lines insurance protects against a financial risk that is too great or too uncommon for a regular insurance company to take on. Surplus lines insurance can be purchased by individuals or companies. Key Takeaways Surplus lines insurance protects against a financial risk that a regular insurance company will not take
What Is a Surplus Share Treaty? A surplus share treaty is a reinsurance treaty in which the ceding insurer retains a fixed amount of policy liability and the reinsurer takes responsibility for what remains. Surplus share treaties are considered pro-rata treaties and are most commonly used with property insurance. Key Takeaways A surplus share treaty is a
What Is a Surrender Charge? A surrender charge is a fee levied on a life insurance policyholder upon cancellation of their life insurance policy. The fee is used to cover the costs of keeping the insurance policy on the insurance provider’s books. A surrender charge is also known as a “surrender fee.” Key Takeaways A surrender charge
What Is a Surrender Fee? A surrender fee is a penalty charged to an investor for withdrawing funds from an insurance or annuity contract early or canceling the contract. Surrender fees act as an incentive for investors to maintain their contracts and reduce the frequency of early withdrawals. Investors may run into surrender fees for
What Is a Surrender Period? The surrender period is the amount of time an investor must wait until they can withdraw funds from an annuity without facing a penalty. Surrender periods can be many years long, and withdrawing money before the end of the surrender period can result in a surrender charge, which is essentially
What Is Suggestive Selling (Upselling)? Suggestive selling (also known as add-on selling or upselling) is a sales technique where an employee asks a customer if they would like to include an additional purchase or recommends a product which might suit the client. Suggestive selling is used to increase the purchase amount of the client and the
