insurance

Controlling law refers to the body of law a court will apply in resolving a dispute. Because states have widely different substantive laws, identifying which law is controlling can determine the outcome of a case.

The term cumis counsel is taken from the case San Diego Federal Credit Union v. Cumis Ins. Society.

Deductible for legal purposes means some kind of expense that reduces the amount someone owes.

Regarding insurance, a deductible is an amount in an insurance claim that the provider deducts from a claim that must be paid by the insurance holder, or a deductible is the amount an individual must pay before the insurance begins paying out for claims. For example, Johnny wrecks his car causing $10,000 in damage. If Johnny has a $1,000 deductible, the insurance company would only pay $9,000.

Endowment insurance is similar to life insurance except the funds or “endowment” is payable to the holder or beneficiary at a specific date, not at the owner's death. The owner pays a monthly premium with the confidence of receiving the certain amount later on.

Errors and omissions (also referred to as E&O) is a form of professional liability insurance that protects policy-holding professionals from financial losses arising out of negligent acts, mistakes, or failu

Face amount refers to what the words or numbers on the printed page of a financial instrument literally say. Often used in the context of life insurance, the face amount refers to the stated amount of money payable to the deceased’s beneficiaries at the time of loss or when the policy matures.

Face value is the nominal value printed on a security at the time of issuance.

The Federal Deposit Insurance Corporation (FDIC) insures $250,000 of deposits for each individual’s accounts at over 5,000 banks. This reassures depositors that their money is accessible in the situation where their bank fails, reducing the threat of bank runs during financial crises. The FDIC insures multiple different types of accounts including single accounts, joint accounts, and retirement accounts.

The Federal Deposit Insurance Corporation (FDIC) is an independent government agency that insures depositor’s accounts at most U.S. banks. Federal Deposit Insurance Corporation (FDIC) was created by the Banking Act of 1933 (Glass-Steagall) in 1933, in the middle of the Great Depression.

Federal Unemployment Tax Act (FUTA) was the bill passed in 1939 that established a payroll tax to fund unemployment benefits. The tax is 6% of the first $7,000 that each employee makes in a year, and the employer is responsible for all of the tax unlike similar payroll taxes. For example, if XYZ Co. paid Tina $20,000, Jerry $7,000, and Patricia $5,000 last year, XYZ Co.

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