General account

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.
Japan's general account tax revenues in August dropped 33.
Manulife Financial Corporation (NYSE: MFC) (TSX: MFC) has appointed Scott Hartz as executive vice president, General Account Investments.
Unlike the general account, the contents of the special accounts, financed mainly by special-purpose taxes, are not subject to Diet debate and critics say they are determined behind closed doors without close examination.
Previously, the e-archiving initiative was funded from NARA's general account.
Prudential Investment Management is Prudential's asset management business, which provides a range of investment products for institutional and retail clients, along with Prudential's general account.
An association of 12 domestic airlines called on the government Monday to increase appropriations from its general account to finance projects to upgrade major airports, including Tokyo's Haneda airport, association officials said.
The Supreme Court had ruled in Harris Trust that certain pension funds held in an insurance company's general account (generally, the component of a deposit administration contract that varies with the investment experience of the insurance company) are plan assets; thus, the insurer's actions with respect to the management and disposition of such funds are subject to ERISA's fiduciary standards.
Pursuant to that provision, Congress carved out retiree benefits associated with key employees from the general account limit rule by compelling welfare benefit funds to establish "a separate account" for, such individuals.
As a result, many insurance companies are reevaluating the terms on which they will invest general account assets in mortgage- and asset-backed securities.
Japan's general account tax revenues in July recorded a sharp decline of 26.