Appleton Rule

AAA

DEFINITION of 'Appleton Rule'

A regulation initiated in 1901 by Henry D. Appleton, a New York Deputy Superintendent of Insurance. The Appleton rule stated that every life insurance company doing business in New York was required to abide by New York legislation even if it did business in other states.

INVESTOPEDIA EXPLAINS 'Appleton Rule'

In 1939, the rule was incorporated into New York's insurance laws. Although the Appleton rule was popular in New York, it was not as welcomed in other states because any proposed new regulation that would conflict or jeopardize New York state insurance licenses would meet opposition. The rule was disliked by other insurance commissioners because it prevented them from introducing different regulations if they opposed the Appleton rule.

RELATED TERMS
  1. Life Insurance

    A protection against the loss of income that would result if ...
  2. Insurance

    A contract (policy) in which an individual or entity receives ...
  3. Insurance Score

    A rating computed and used by insurance companies that represents ...
  4. Company Owned Life Insurance - ...

    A type of life insurance policy taken out by a company on the ...
  5. Multiple Employer Welfare Arrangement ...

    An arrangement where a group of employers pool their contributions ...
  6. Lloyd's Of London

    A British insurance market where members join hands as syndicates ...
Related Articles
  1. A Look At Single-Premium Life Insurance
    Home & Auto

    A Look At Single-Premium Life Insurance

  2. Understanding Your Insurance Contract
    Insurance

    Understanding Your Insurance Contract

  3. The History Of Insurance
    Home & Auto

    The History Of Insurance

  4. How An Insurance Company Determines ...
    Home & Auto

    How An Insurance Company Determines ...

comments powered by Disqus
Hot Definitions
  1. Elasticity

    A measure of a variable's sensitivity to a change in another variable. In economics, elasticity refers the degree to which ...
  2. Tangible Common Equity - TCE

    A measure of a company's capital, which is used to evaluate a financial institution's ability to deal with potential losses. ...
  3. Yield To Maturity (YTM)

    The rate of return anticipated on a bond if held until the maturity date. YTM is considered a long-term bond yield expressed ...
  4. Net Present Value Of Growth Opportunities - NPVGO

    A calculation of the net present value of all future cash flows involved with an additional acquisition, or potential acquisition. ...
  5. Gresham's Law

    A monetary principle stating that "bad money drives out good." In currency valuation, Gresham's Law states that if a new ...
  6. Limit-On-Open Order - LOO

    A type of limit order to buy or sell shares at the market open if the market price meets the limit condition. This type of ...
Trading Center