face amount


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face amount

n. the original amount due on a promissory note or insurance policy as stated therein, without calculating interest.

References in periodicals archive ?
49.4251-4 deals primarily with defining what constitutes the taxable "face amount" of a card.
New variable universal life (VUL) premium revenue increased 3%, but the number of VUL policies sold fell 11%, and the total amount of VUL face amount sold fell 5%.
Overall, ultimate experience (durations 26+) was 89% of the 2001 VBT by face amount. This ratio dropped from 91% to 88% between the 2002-03 and 2003-04 observation years and is the same for the common companies.
As in the cash surrender value method, the difference between the carrying amount of the policy and its face amount is recognized as a gain at the death of the insured, although the amount of the gain is significantly reduced.
Time Warner Inc (NYSE:TWX) announced on Tuesday the pricing of a USD1.5bn underwritten public offering of 3.80% senior notes due 2027 at a price equal to 99.615% of the face amount.
Each of these will play a critical role in the expected development of claims for the acceleration of the face amount.
Product Name: Minimum face amount $25,000; varies by age
Many combination life/QLTC contracts contain a provision that promises a minimum death benefit will be paid, say 10% of the purchased face amount, regardless of whether the face amount has been completely paid out.
This ensures that the note's face amount equals its fair market value in present value terms, hence showing that the client received full value for the assets sold to the TPT.
Third, the state instituted administrative reforms in the gains tax, including a redefinition of "consideration" as appraised market value, rather than the face amount of the debt for computing gains tax liability.
For example, an enterprise might issue convertible bonds with a face amount of $50,000,000 and a coupon rate, payable semi-annually, of 7.8 percent when the market interest rate for otherwise comparable, nonconvertible bonds is 10 percent.
Where the purchaser merely promises to pay the face amount of the purchase price in the future, however, there is some question whether (1) the promise constitutes "property" within the meaning of section 1001(b), the value of which must be reported in the year received or (2) the seller may be considered to have received "property" only when the purchaser's promise to pay is fulfilled.