What is the definition of General Account?
A General Account refers to the combined or undivided investments and assets that the insurance company has available in order for it to be able to pay the benefits and claims of their policyholders. This is especially true for holders of whole life insurance, fixed rate annuities and other guaranteed insurance or annuity product.
You see, the claims and benefits payments that the insurance company needs to provide its customers are generally not backed up by the other assets and investments of the insurance company. That is why it is important for it to have a general account that will secure their ability to pay for their policy obligations.
This ability is one of the ways an insurance company can be evaluated as to its stability and soundness as a company.
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- Generally Accepted Accounting Principles (GAAP)
- Generic Auto Parts
- Glass Insurance
- Grace Period
- Graded Premium Policy
- Graduated Driver Licenses
- Gramm-Leach-Bliley Act
- Gross Annuity Cost
- Group Insurance
- Guarantee Period
- Gap Insurance
- Futures
- Fronting
- Frequency
- Free-Look period
- Fraud
- Fraternal Insurer
- Fraternal Benefit Society
- Foreign Insurance Company
- Forced Place Insurance