Page 3 - Glossary of Terms flipbook

certain and life annuity an annuity designed to make payments for the life of the annuitant with a certain
number of years guaranteed. Payments may be made monthly or annually,
immediately or deferred (ie: beginning 05/01/2003, $200 per month for 15 years
certain and life.

constructive receipt income not in the taxpayer's possession but credited to his account, set apart for
him or otherwise made available for him to draw upon.

contingent payee the individual(s) or estate which will receive the guaranteed payments should
the annuitant dies prior to all guaranteed payments being made. Also known as
the beneficiary.

cost the price of the future payment, derived from the formula used for an annuity.

cost/$1,000 the basis for all cost figures which represents the cost to purchase a $1,000
benefit for any type of payment (monthly, annually, semi-annually, quarterly,
lump sum).

defense the individual or corporation who is/are being sued. Also known as
defendant/respondent employer, insured.
defense attorney the attorney representing the defense and the defense's casualty company.

deferred annuity an annuity in which the payments do not begin until a stated time in the future
(usually more than one year in the future).

education fund funds to be paid over a certain period, usually starting at age 18 and continuing
during the educational or vocational training years.

excess carrier a casualty company who insures an individual or corporation over the policy
limits of the firm's casualty company. The policy is purchased by the insured.

first payment date the day payments will begin for the entire settlement or for the annuity option
chosen.

general creditor a claimant whose interest in the property owned by the obligor is no more than
any other creditor.

guaranteed benefit the payments guaranteed to be made regardless of whether the annuitant is
living.

installment refund a lifetime annuity with a guaranteed benefit equal to the premium amount.
Commonly used for workers' compensation cases. The beneficiary will be the
casualty company and the remaining payments after the death of the annuitant
will be made in installments as designated on the annuity.

joint & survivor lifetime annuity an annuity designed to provide payments for the lives of two annuitants,
whether both are living. There may be a guaranteed period and the percent
of payment received upon the death of one annuitant may vary. Payments may be
made monthly or annually, immediately or deferred (ie: beginning 05/01/2003,
$500 per month for 10 years certain and life, 100% joint and survivor).

2