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
Coverage that exceeds the normal insurance capacity of an insurer or reinsurer. ...
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Provision of liability insurance that excludes coverage for dishonest acts of an insured. ...
Payment under a state-sponsored program for victims of crimes. ...
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Standards used to determine claims payments in cases of overlapping property/liability insurance coverage. At one time, each type of insurance had its own rules to govern claims where more ...
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