Futures Tied To Reinsurance
Definition of "Futures tied to reinsurance"
Futures contracts based on automobile and health reinsurance policies to be traded on the Commodity Future Exchange of the Chicago Board of Trade. The purpose is to allow insurance companies in the United States and abroad to use these futures contracts to hedge against losses on automobile and health policies that the companies underwrite. At the expiration point of the 3-month-long futures contract, certificates of reinsurance (showing evidence of the existence and terms of a particular policy or policies) are issued to the remaining contract holders. After all the claims have been paid, the reinsurance certificates are redeemed for an amount equal to the net earned premium.
Popular Insurance Terms
In life insurance, action by an insurance company canceling premium payments by an insured who has been disabled for at least six months. The policy remains in force and continues to build ...
Portion of reinsurance premium received by the reinsurer that relates to the unexpired part of the reinsured policy. ...
Form of state rating legislation that allows each property/liability insurer to choose between using rates set by a bureau or its own rates. Individual states regulate insurers and approve ...
Will written totally in the handwriting of that individual whose name appears on the will. ...
Provision that excludes from coverage under Form No. 3: flood damage, except if the flood causes a fire, explosion, or theft; water damage from the backup of sewers; earthquake, except if ...
Same as term: engineering approach; human approach ...
In some life insurance policies, provision that permits the beneficiary, upon the death of the insured, to receive not only the death benefit payable under the policy but also all premiums ...
Mortality table that is a picture of the actual living and/or dying of the population (the universe) upon which the mortality table is based. No additions or subtractions are made to these ...
Expense listed on the Income and Expenditure accounting statement for the unexpired insurance policy owned. ...
Have a question or comment?
We're here to help.