Glossary

The term stock company refers to an insurance company that has, in addition to surplus and reserve funds, a capital fund paid in by stockholders.

Stock option is a right to purchase shares of stock in a corporation at a specified price, usually, but not always, on or before a specified date.

Stock option claims involve allegations by current or former employees that they have been wrongfully deprived of monies due from stock option grants provided by the organization.

Stop-loss reinsurance is an agreement whereby a reinsurer assumes on a per-loss basis all loss amounts of the reinsured, subject to the policy limit, in excess of a stated amount.

A stop-gap endorsement is an endorsement that is primarily used to provide employers liability coverage for work-related injuries arising out of exposures in monopolistic fund states (fund workers compensation policies do not provide employers liability coverage).

Stop loss is a form of reinsurance under which a reinsurer is liable for all losses, regardless of size, that occur after a specified loss ratio or total dollar amount of losses has been reached

Storekeepers Broad Form is commercial crime coverage plan 3 of the Insurance Services Office, Inc. (ISO), portfolio. Coverage for various forms of crimes, including employee dishonesty, is provided under this form.

A storekeepers burglary and robbery policy covers loss of property other than money and securities by robbery and burglary.

A storm surge is water that is pushed toward the shore due to the force of winds swirling around a storm advancing across a body of water.

The Stowers Doctrine holds that a liability insurer that undertakes the defense of an insured has a duty to act in good faith in settling a liability claim. It is named for a seminal Texas case, G. A. Stowers Furniture Co. v. American Indem. Co. , 15 S.W.2d 544 (Tex. Comm'n App. 1929).