Investment In Junk Bonds Ratio

Definition of "Investment in junk bonds ratio"

Ana  Bohabot real estate agent

Written by

Ana Bohabotelite badge icon

Keller Williams Legacy

Ratio of the company's investment in noninvestment grade bonds dividend to its adjusted surplus. This ratio shows how vulnerable the company's surplus is to the market fluctuations in noninvestment grade bonds. The lower this ratio, the more financially sound the insurance company.

image of a real estate dictionary page

Have a question or comment?

We're here to help.

*** Your email address will remain confidential.
 

 

Popular Insurance Terms

Insurance company's growth rate of adjusted surplus divided by its adjusted liabilities. The greater this ratio, the more financially sound the insurance company, as the surplus would be ...

Latin phrase meaning "without which not," signifying a legal rule in tort and negligence cases. Under this rule, a plaintiff trying to prove that an injury was a direct result of a ...

Agreement prepared by an insurance company and offered to prospective insureds on a take-it-or-leave-it basis. If the contracts are misinterpreted by insureds, courts have ruled in their ...

Coverage on an all risks basis for goods in transit, bailment, and while on the premises of others. ...

Means of distribution that uses general agents rather than branch offices to sell life and health insurance. ...

Highly visible form of marketing communication with the public with these objectives: (1) encourage agents and brokers to sell insurance company products, (2) predispose customers to be ...

Property and/or liability coverage for a municipality. Municipalities are responsible for maintenance of through ways as well as a myriad of public services. Liability insurance for ...

Business interruption insurance in which the insured is indemnified for loss of earnings and payment of expenses resulting from adverse weather conditions. For example, the raining out of a ...

The regulation that, prior to its repeal, limited the amount of interest a time deposit at a bank could pay. ...

Popular Insurance Questions