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
Federal law passed in 1920 that allows any seaman incurring bodily injury as the result of the performance of one or more functions of the job to bring a suit for damages against the ...
Payment of premiums and benefits as they come due. In pension plans, known as the "pay as you go basis." The plan depends on new employees coming into the work force so that their ...
Property damage resulting from aircraft traveling faster than the speed of sound. Although the vibrations caused by such high speed can cause damage, it is excluded on most property forms. ...
Charitable planning strategy under which a donor transfers title to his or her residence or farm to the charity. Upon transfer of title, the donor reserves the right to occupy the property ...
Allocation of funds in a retirement plan. ...
Arrangement by an employer in which employees share in profits of the business. To be a qualified plan, a predetermined formula must be used to determine contributions to the plan and ...
Sum of insurance provided by a policy at death or maturity. ...
Property damage coverage for a vehicle under the collision insurance and comprehensive insurance sections of the business automobile policy (BAP) and the personal AUTOMOBILE POLICY (PAP). ...
Injury covered in a health insurance policy that is isolated from any previous injury. ...
Have a question or comment?
We're here to help.