What Is Cash Surrender Value? Cash surrender value is money an insurance company pays to a policyholder or an annuity contract owner if their policy is voluntarily terminated before maturity or an insured event occurs. This cash value is the savings component of most permanent life insurance policies, particularly whole life insurance policies. It is also
What Is a Cash Transaction? A cash transaction is a transaction where there is an immediate payment of cash for the purchase of an asset. It differs from other types of transactions that involve delayed delivery of the purchased item, or delayed payment for the item, such as forward contracts, futures contracts, credit transactions, and
What Is a Cash Trigger? A cash trigger is a condition that triggers an investor to make a trade or take a specific action, such as buying or selling a financial product such as a stock, option, futures contract, bond, or currency. Self-imposed cash triggers are most common among retail investors. They include deciding to
What Is the Cash Value Accumulation Test (CVAT)? The cash value accumulation test (CVAT) is a test for determining whether a financial product can be taxed as an insurance contract rather than as an investment. The cash value accumulation test is used to make sure that the cash value of the insurance policy does not exceed the present
What Is Cash Value Life Insurance? Cash value life insurance is a form of permanent life insurance—lasting for the lifetime of the holder—that features a cash value savings component. The policyholder can use the cash value for many purposes, such as a source of loans or cash or to pay policy premiums. Key Takeaways Permanent life
What Is Cost Per Available Seat Mile? Cost per available seat mile (CASM) is a common unit of measurement used to compare the efficiency of various airlines. It is obtained by dividing the operating costs of an airline by available seat miles (ASM). Generally, the lower the CASM, the more profitable and efficient the airline.
What Is Casualty Insurance? Casualty insurance is a broad category of insurance coverage for individuals, employers, and businesses against loss of property, damage, or other liabilities. Casualty insurance includes vehicle insurance, liability insurance, and theft insurance. Liability losses are losses that occur as a result of the insured’s interactions with others or their property. For homeowners or
What Are Casualty and Theft Losses? Casualty and theft losses are deductible losses that arise from the destruction or loss of a taxpayer’s personal property. To be deductible, casualty losses must result from a sudden and unforeseen event. Theft losses generally require proof that the property was actually stolen and not just lost or missing. Key Takeaways Casualty
What Was the Catalog of Federal Domestic Assistance (CFDA)? The Catalog of Federal Domestic Assistance (CFDA) was a compilation of federal U.S. assistance programs that provided a full listing of programs available to corporate and government agencies, United States territories, and members of the American public. Today, the CFDA’s content is listed through the SAM.gov website.
What Is Catastrophe Accumulation? In the insurance industry, the term “catastrophe accumulation” refers to the aggregate claims that would need to be paid if one or more catastrophes were to occur across an entire region. In this sense, the catastrophe accumulation is a type of estimate of potential damages caused by catastrophes such as earthquakes
