Q Schedule
A New York specific regulation that schedules (and limits) the types of expenses that can be charged against new business by an insurer. The insurer must file the schedule to verify compliance. The overall effect of the Q Schedule in New York is to reduce commissions.
[Q010]
QPA
Qualified Pension Administrator designation sponsored by the American Society of Pension Actuaries. Headquarters: Fairfax, VA.
QQS
(See qualifying quota share.)
[Q011]
Qualified annuity
Can be part of a pension plan, an IRA or other retirement vehicle. Qualified deposits made to the plan are not taxed, but withdrawals are taxed.
[Q002]
Qualified impairment insurance
A health insurance rider that eliminates the policy exclusion for impairment, making that impairment acceptable or "qualified" with respect to coverage.
[Q003]
Qualified plan
Qualified plans are those employee benefit plans that meet Internal Revenue Service requirements as stated in IRS Code Section 401a. When a plan is approved, contributions made by the employer are tax deductible expenses.
[Q003a]
Qualified retirement plan
A retirement plan that has been formed to comply with the IRS federal tax regulations, whether the plan is a pension plan, a profit-sharing plan or a savings plan. Funds to the plans will accumulate but taxes are deferred until actual retirement and the distribution of benefits. Employee contributions may be made to qualified plans on a pretax earnings basis. Contributions to the plans by employers are treated as current business expenses for tax deduction purposes.
[Q004]
Qualified terminable interest property trust
A type of trust for married couples in which an annual income payout is made to the surviving spouse from trust assets. In effect, this reduces estate taxes assessed against the surviving spouse while providing annual income for the survivor.
Qualifying event
(See coverage trigger.)
[Q012]
Qualifying power
The largest net amount of risk that may be carried by a surety company on a bond . (See treasury listing.)
Qualifying quota share
Regarding operations at Lloyd's of London, refers to a quota share treaty which, if approved by Lloyd's governing board, a syndicate may use in order to expand its underwriting capacity.
[Q005]
Quantity discount
Premium credits given in certain life insurance policies that have high benefit payout amounts.
[Q006]
Quasi-insurance institutions
Federal, state, or local government institutions which implement and run compulsory government programs that give the appearance of acting in a way similar to the insurance mechanism. Unemployment compensation is an example.
[Q007]
Quick assets
Highly liquid assets that can be converted to cash very quickly. Cash, checks, certain stocks, bonds, and Treasury Bills are all examples. Real and personal property are not.
[Q007a]
Quid pro quo
Latin term meaning "this for that," or "one thing for another." As it applies to insurance, it is when the consideration in an insurance contract is an exchange of values between both parties to the contract; the exchange must be approved for it to become a valid contract.
(See consideration.)
[Q008]
Quota share
When more than one policy, insurer, or reinsurer is obligated to respond to a property loss for a risk according to a percentage or its proportionate share of the total limits applicable. Premiums are usually shared in the same proportion as the limits.
[Q009]
Quota share reinsurance
A form of pro rata reinsurance (proportional) in which the reinsurer assumes an agreed percentage of each insurance policy being insured and shares all premiums and losses accordingly with the reinsured.
[Q013]
Quote
A price estimate given to a party who is seeking insurance coverage. Quotes are given before any applications are submitted.
