General account

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General account

Federal Reserve Board's term for a margin account provided to a customer by a brokerage firm. Governed by Regulation T of the Fed.

General Account

1. In the parlance of the Federal Reserve, a margin account.

2. In insurance, the account into which all premiums are deposited, unless the policyholder has designated a different account (especially in a whole life policy). Funds in a general account are invested and the proceeds are used to pay claims.

general account

General account.

A general account is a deposit account.

In the insurance industry, a general account is the account into which all incoming funds, except those designated for a separate account, are deposited.

Deposits to a general account include premiums for life insurance and fixed annuities, plus assets in the fixed portfolios of variable annuities.

Assets in a general account can be used to cover company expenses and are vulnerable to creditors' claims. In fact, this account can be sued to pay the firm's obligations. That's one reason that contract holders are cautioned that payouts are subject to the insurer's ability to pay its claims.

The Federal Reserve considers brokerage firms' margin accounts that are governed by Regulation T as general accounts. The Fed requires that all margin transactions made on behalf of clients be conducted through the clients' individual general accounts.

References in classic literature ?
In the present volume he confines himself to a general account of the captain's bad treatment of the crew, and of his non-fulfilment of agreements.
After assuring him that I did not forget how interested he had always been in her, and how kindly he had always treated her, I gave him a general account of her restoration to her uncle by the aid of Martha; which I knew would please the old man.
The committee successfully urged modifications in 1996 to the ERISA Clarification Act, which sought to exempt assets in insurers' general accounts from ERISA's fiduciary standards and, according to CIEBA, would have overturned a 1993 Supreme Court decision affirming ERISA protection.
When the dust settled, President Clinton had signed a revised act on August 20, 1996, extending ERISA's fiduciary standards to all insurance general account contracts.
The DOL has issued a class exemption from the Code's and ERISA's prohibited transaction rules for certain transactions involving insurance company general accounts in which an employee benefit plan has an interest.
Numerous transactions by insurance company general accounts prior to Harris Trust may have violated ERISA's prohibited transaction provisions, giving rise to the potential for significant additional litigation.
13, 1993) ("Harris"), applies the fiduciary responsibility provisions of the Employee Retirement Income Security Act of 1974, as amended (ERISA), to investments by insurance company general accounts.
The imposition of ERISA fiduciary standards may reduce insurance companies' interest in purchasing higher risk classes of securities for their general accounts.
As a result of the new policy, which is effective immediately, the minimum initial investment threshold for IRAs and UGMA/UTMAs increases from $1,000 to $3,000; general accounts remain at $3,000.
Brennan, who noted that the $3,000 entry point for Vanguard funds has been in place since 1989 for general accounts.
26) an employer maintained separate payroll and general accounts at the bank.
Fidelity asked CDI to close its payroll account at another bank and have all payroll checks paid through its general account with Fidelity.

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