Interest Rate Collar
Combination of an interest rate cap and an interest rate floor, creating a band within which interest rates can range. For example, if an interest rate band is between 6% and 10%, the insurance company does not receive or pay a continuous stream of interest payments from or to another party within this band. Above the upper limit on the maximum possible interest rate an insurance company will pay, and below the lower limit of the maximum possible interest rate an insurance company will pay, the insurance company and another party will exchange interest payments.
Popular Insurance Terms
Law, in several states, establishing a fund to guarantee benefits under policies issued by insurance companies that become insolvent. ...
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Same as term Mortality Table: chart showing rate of death at each age in terms of number of deaths per thousand. ...
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Actuarial method of crediting retirement benefits earned and the costs associated with these earned retirement benefits. An increment (unit) of benefit is credited for each year of ...
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