Dictionary of Finance and Investment Terms: five percent rule
five percent rule
one of the Rules of Fair Practice of the National Association of Securities Dealers (NASD). It proposes an ethical guideline for spreads in dealer transactions and commissions in brokerage transactions, including proceeds sales and riskless transactions.
Dictionary of Insurance Terms: five percent rule
five percent rule
coinsurance requirement such that if a loss is less than $10,000 and also less than 5% of the total of insurance to cover a loss, then the insurance company will not require that the property not damaged by the peril be inventoried or appraised.
