| In general, previously-given money or benefits that are taken back due to special circumstances. More specifically, an arrangement in which the sponsors of a project agree to use their prior dividends received from the project to cover any subsequent cash deficiencies. A largely defunct term used in life assurance where, under certain conditions, life assurance premium relief (LAPR) given under a life policy could be recovered (or clawed back) by the Inland Revenue. Also where a life company advances indemnity commission to an agent, the company does so on the understanding it will be entitled to recover some or all of the commission paid if the relevant policy is cancelled within a given period.
|
