Coverage up to specific limits for the cost of ransom or extortion payments and related expenses. Often bought by international corporations to cover employees. Most policies have large deductibles and may exclude certain geographic areas. Some policies require that the policyholder not reveal the coverage’s existence.
The percentage of gross premium or gross profits necessary for covering future policy liabilities or amortizing DAC or PVFP asset. This factor, times the gross premium or gross profits, determines the amount used for valuation or amortization calculations.
Corporate bonds with Credit ratings of BB or less. They pay a higher yield than investment grade bonds because issuers have a higher perceived risk of default. Such bonds involve market risk that could force investors, including insurers, to sell the bonds when their value is low. Most states place limits on insurers’ investments in … Read more
A limit placed on the amount of coverage that may be inforce and applied for on an individual life for automatic reinsurance purposes. If such insurance exceeds the limit, the risk must be submitted for facultative review.
Insurers which join together to provide coverage for a particular type of risk or size of exposure, when there are difficulties in obtaining coverage in the regular market, and which share in the profits and losses associated with the program. JUAs may be set up to provide auto and homeowners insurance and various commercial coverages, … Read more
Income generated by the investment of assets. Insurers have two sources of income, underwriting (premiums less claims and expenses) and investment income. The latter can offset underwriting operations, which are frequently unprofitable.
Coverage designed to protect businesses from liabilities that arise from the conducting of business over the Internet, including copyright infringement, defamation, and violation of privacy.
An insurer that sells exclusively via the Internet.
Level discount rate where present value of Distributable Profits are equal to zero at time zero.
The process of bringing savers, investors and borrowers together so that savers and investors can obtain a return on their money and borrowers can use the money to finance their purchases or projects through loans.
