Prout Financial Design

Terms

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Non-Participating

A life insurance policy in which the company does not distribute to policyowners any part of its surplus.

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Open End Index Fund

This type of fund structure reinvests dividends the date of receipt and pays them out via a quarterly cash distribution.

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Over the Counter (OTC)

Over the counter trading is conducted by market makers in OTCBB and Pink Sheets securities using inter-dealer quote services like

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Overvalued Stock

Stock that trades at a higher price than the issuing company’s reputation, earnings outlook, or financial situation would seem to

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Participating Policy

A life insurance policy under which the company agrees to distribute to policyowners the part of its surplus that its

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Policy

The printed legal document stating the terms of insurance contract that is issued to the policyowner by the company.

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Policy Proceeds

The amount actually paid on a life insurance policy at death or when the policyowner receives payment at surrender or

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Policyowner

The person who owns a life insurance policy. This is usually the insured person, but it may also be a

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Portfolio

The combined holdings of stock, bond, commodity, real estate and other investments by an individual or institutional investor.

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