Separate Account
/ˈsɛpərɪt əˈkaʊnt/
Definitions
- (n.) An account maintained separately from the general assets of a company or financial institution, often for holding assets on behalf of a client or policyholder.
The insurer held the premiums in a separate account to distinguish them from its own funds.
- (n.) A segregated investment fund, typically in insurance or banking, where client funds are isolated from the company's general assets to protect beneficiaries.
Investments in the separate account are not subject to the insurer's creditors in case of insolvency.
Forms
- separate account
- separate accounts
Related terms
See also
Commentary
Common in insurance and investment law, separate accounts ensure client assets remain distinct from company assets, limiting risk and enhancing fiduciary protection.
This glossary is for general informational and educational purposes only. Definitions are jurisdiction-agnostic but reflect terminology and concepts primarily drawn from English and American legal traditions. Nothing herein constitutes legal advice or creates a lawyer-client relationship. Users should consult qualified counsel for advice on specific matters or jurisdictions.