LOMA Glossary

The LOMA Glossary of Insurance and Financial Services Terms

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1035 Exchange. See Section 1035 Exchange.

12b-1 fee. In the United States, an annual fee that is used as an alternative to a sales load to cover the cost of marketing and distributing mutual funds.

13-month lapse rate. A lapse rate for insurance policies that is based on the proportion of new policies on which no part of any required second-year premium has been paid.

401(k) plan. In the United States, a type of retirement savings plan that is established by employers for the benefit of employees and that allows both employers and employees to make specified contributions to the plan that reduce current taxable income.

403(b) plan. In the United States, a type of retirement savings plan that is established by not-for-profit employers for the benefit of employees and that allows both employers and employees to make specified contributions to the plan that reduce current taxable income.

412(i) plan. See individual policy pension trust.

457 plan. In the United States, an arrangement that allows state and local governments and their employees to make contributions to a tax-deferred savings plan established for the benefit of employees.

60-day rollover. See rollover.

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