Interest Rate Risk
Investment risk associated with the possibility that there is a rise in the interest rates after a fixed income security has been purchased resulting in a decline in that security's price. The longer the maturity date of that security, the greater the exposure of the security's price to interest rate fluctuations. The fluctuations in interest rates can have a dramatic effect on the insurance company's bond portfolio.
Popular Insurance Terms
Coverage for suits brought by a plaintiff as the result of bodily injury incurred while using an elevator on the insured's premises. ...
Coverage on more than one person that pays a benefit after all of the insureds die. This type of joint life policy is significantly cheaper than a regular policy. Survivorship life ...
Sum received by an insurance company at the sale of its stock. This capital represents the interest of the stockholders in the company. ...
Policies that have been sold to and paid for by an insured, but not yet delivered to the insured. ...
Maximum amount that an insurance company will pay under a liability insurance policy for claims resulting from a particular accident. This maximum amount applies regardless of the amount of ...
Coverage that guarantees that the executor or administrator of an estate will conduct his or her duties according to the provisions of the will and the legal requirements of the ...
New pension-accounting rule created by the Financial Accounting Standards Board. The objective of this rule is to clarify pension accounting so that investors, employers, and employees will ...
Interest of a beneficiary in the proceeds of a survivorship annuity. ...
Experience as it relates to the annual costs associated with a pension plan. In calculating premiums due under a pension plan, basic assumptions must be made concerning future loss ...
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