deferred dividend
Tontine insurance Ton*tine" in*su"rance (Life Insurance) Insurance in which the benefits of the insurance are distributed upon the tontine principle. Under the old, or

{full tontine}, plan, all benefits were forfeited on lapsed policies, on the policies of those who died within the tontine period only the face of the policy was paid without any share of the surplus, and the survivor at the end of the tontine period received the entire surplus. This plan of tontine insurance has been replaced in the United States by the

{semitontine} plan, in which the surplus is divided among the holders of policies in force at the termination of the tontine period, but the reverse for the paid-up value is paid on lapsed policies, and on the policies of those that have died the face is paid. Other modified forms are called {free tontine}, {deferred dividend}, etc., according to the nature of the tontine arrangement. [Webster 1913 Suppl.]


The Collaborative International Dictionary of English. 2000.

Look at other dictionaries:

  • deferred dividend — /dəfɜd ˈdɪvədɛnd/ (say duhferd divuhdend) noun a dividend to which the holder of a company share is not entitled before a certain lapse of time, unless ordinary shareholders receive more than the stated rate of dividend …   Australian English dictionary

  • deferred dividend — noun : an insurance dividend payable from the surplus accumulated during a given period to those policyholders only who are alive at its expiry and whose policies are then in force …   Useful english dictionary

  • deferred dividend policy — A policy of life insurance wherein it is stipulated that the insured is not entitled to any part of the surplus or dividend, otherwise accruing upon the policy annually, until the expiration of a dividend period, which may be 5 years, 10 years,… …   Ballentine's law dictionary

  • dividend equivalent right — USA The right to receive an amount equal to any per share dividend declared by a company. Dividend equivalent rights are usually granted to an employee or other individual performing services for a company and may be paid in cash, company stock… …   Law dictionary

  • dividend — The distribution of current or accumulated earnings to the shareholders of a corporation pro rata based on the number of shares owned. Dividends are usually issued in cash. However, they may be issued in the form of stock or property. The… …   Black's law dictionary

  • dividend — The distribution of current or accumulated earnings to the shareholders of a corporation pro rata based on the number of shares owned. Dividends are usually issued in cash. However, they may be issued in the form of stock or property. The… …   Black's law dictionary

  • deferred share — /dəfɜd ˈʃɛə/ (say duhferd shair) noun 1. → deferred delivery share. 2. a share which entitles the holder to a deferred dividend …   Australian English dictionary

  • deferred share — ➔ Share * * * deferred share UK US noun [C] STOCK MARKET ► a type of share where the dividend (= part of a company s profits) does not have to be paid until payments have been made on all other shares: »The directors receive their cash… …   Financial and business terms

  • Deferred Share — 1. A share that does not have any rights to the assets of a company undergoing bankruptcy until all common and preferred shareholders are paid. 2. A method of stock payment to directors and executives of a company through the deposit of shares… …   Investment dictionary

  • deferred ordinary share — 1) A type of ordinary share, formerly often issued to founder members of a company, in which dividends are paid only after all other types of ordinary share have been paid. Such shares often entitle their owners to a large share of the profit. 2) …   Accounting dictionary

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