Process to test the relationship of expected asset cash flows and expected liability cash flows, in an effort to assure that proper assets are in place to fund expected liabilities. Determines the sensitivity of the assets and liabilities to movements in underlying interest rates. Duration is the key measurement, which is the percentage change in … Read more
Bonds that represent Pools of loans of similar types, duration and interest rates. Almost any loan with regular repayments of principal and interest can be securitized, from auto loans and equipment leases to Credit card Receivables and mortgages.
Language providing a means of resolving differences between the reinsurer and the reinsured without litigation. Usually, each party appoints an arbiter. The two thus appointed select a third arbiter, or umpire, and a majority decision of the three becomes binding on the parties to the arbitration proceedings. A Clause within a reinsurance agreement providing that … Read more
Expenses incurred by a Ceding Company in the process of writing new or renewal business, including producer commissions. These expenses may include commissions, medical and inspection fees, and field supervision costs.
A survey to determine a property’s insurable value, or the amount of a loss.
The dividing of a loss proportionately among two or more insurers that cover the same loss.
Laws that prohibit companies from working as a group to set prices, restrict supplies or stop competition in the marketplace. The insurance industry is subject to state antitrust laws but has a limited exemption from federal antitrust laws. This exemption, set out in the McCarran-Ferguson Act, permits insurers to jointly develop common insurance forms and share … Read more
The cost of an Annuity based on such factors as the age and gender of the contract owner.
Legal document providing detailed information about variable Annuity contracts. Must be offered to each prospective buyer.
The fee paid for the management of variable Annuity invested assets.
