Bonds most state regulations permit life insurance company investments in debentures, mortgage bonds, and blue chip corporate bonds.
Stocks(a) preferred stock investment is limited to 20% of the total stock of any one company, not exceeding 2% of a company's admitted assets; (b) common stock investment is limited to the lesser amount of 1% of the ADMITTED ASSETS or the policy owner's surplus.
Mortgage investment is unlimited in first mortgages on residential, commercial, and industrial real estate.
Real Estate investment is limited to 10% of admitted assets.
Valuation of the assets in a typical state is accomplished in the following manner: stocks or bonds in default (principal or interest) cannot be valued at greater than market value; bonds not in default valued according to their purchase price adjusted to equal par at maturity; preferred and common stocks of firms in good financial condition are valued according to purchase price; preferred and common stocks in companies not in good financial condition are valued at market price; and real estate, mortgages, and policy loans are valued at book value. Property and casualty insurance:
DOMESTIC INSURERS and FOREIGN INSURERS must invest according to the minimum capitalization requirement in federal, state, or municipal bonds.
Company funds in excess of minimum capitalization and reserve requirements can be invested in federal, state, or municipal bonds as well as stocks or real estate. The insurance company is limited in its investment in any one firm up to no more than 10% of its admitted assets; its real estate investment can be no more than 10% of its admitted assets.
Same as term Fixed Dollar Annuity: annuity that guarantees that a specific sum of money will be paid in the future, usually as monthly income, to an annuitant. For example, a $1000-a-month ...
Account in which a predetermined interest rate is paid for a predetermined period of time. For each contribution that is paid into the fixed account, a new guarantee period begins for that ...
Payments awarded by a court in a liability suit. Money damages can be broken down into compensatory and punitive. Compensatory damages reimburse a plaintiff for expenses incurred for such ...
Same as term Builders Risks Forms: types of contracts that insure building contractors for damage to property under construction. The completed value form requires a 100% coinsurance ...
Claim (lien) of the pension benefit guaranty corporation (pbgc) against an employer's assets upon termination of a pension plan for the amount of an employee's unfunded benefits. ...
Insurance that covers an indirect loss stemming from a direct loss by a covered peril to income-producing property. A building destroyed by fire represents a direct loss. Lost income ...
Expense of soliciting and placing new insurance business on a company's books. It includes agent's commissions, underwriting expenses, medical and credit report fees, and marketing support ...
Circumstance which increases the probability of loss because of an applicant's personal habits or morals; for example, if an applicant is a known criminal. ...
A CD, or Certificate of Deposit, is an investment usually made for a given period of time at a fixed rate of interest. CDs are offered by financial institutions such as banks, and are often ...
1.- Stay Calm. Determine the injuries and or damage. 2.- Call the police. File an accident report and obtain medical assistance if needed. 3.- Limit Discussion. Talk only with the police or ...
Every person has a different idea of what financial security means. If so, should happen to you, how much money would you family need? You should consider:
- Your current debt.
...
You\'ve identified some financial goals and begun to look at potential investments. You\'re on the path to investment success! Putting some plans into motion is an essential step, but it\'s ...
Commercial insurance is designed to help protect many of the risks your business can face, including:
- Damage or destruction to your business vehicles.
- Certain liability ...
Long-term care refers to a broad range of medical and personal care services designed to assist individuals who have lost their ability to perform activities of daily living without ...
There comes a time when every zealous homeowner asks himself – usually at a very inconvenient hour, like 3 am: Do I need Flood Insurance?
The answer is: probably.
Here’s why: ...
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