Definitions

A form of financial guarantee insurance that guarantees the repayment of the principal invested in a mutual fund.

Liability insurance for municipalities.

Coverage that guarantees bondholders timely payment of interest and principal even if the issuer of the bonds defaults. Offered by insurance companies with high Credit ratings, the coverage raises the Credit rating of a municipality offering the bond to that of the insurance company. It allows a municipality to raise money at lower interest rates. … Read more

A package policy, such as a homeowners or business insurance policy, that provides coverage against several different Perils. It also refers to the combination of property and liability coverage in one policy. In the early days of insurance, coverages for property damage and liability were purchased separately.

Total supply of money in the economy, composed of currency in circulation and deposits in savings and checking accounts. By changing the interest rates the Federal Reserve seeks to adjust the money supply to maintain a strong economy.

The net of two modified coinsurance items: the interest on reserves (payable by the Ceding Company to the reinsurer) and the increase in reserves (payable to the Ceding Company by the reinsurer). See Mod-co Adjustment Interest Rate

The interest rate used to determine the interest Credited on the beginning reserves in a mod-co transaction.

In modified coinsurance, the interest rate used to calculate the amount payable by the Ceding Company in consideration of the reserves being transferred back to the Ceding Company by the reinsurer. See Mod-co Reserve Adjustment.