Liquidation And Rehabilitation
Definition of "Liquidation and rehabilitation"
Taking over of an insurance company's assets by the State Insurance Commissioner when examination of the annual report reveals that the company is in substantial financial difficulty. The State Insurance Commissioner will then operate the company in what is deemed to be the best interest of the policy owners, insureds, and creditors. If the State Insurance Commissioner believes it is possible to save the company, rehabilitation (reorganization of the company's structure) may be ordered; if salvage is deemed impossible, liquidation may be necessary.
Popular Insurance Terms
Chance that an event will occur. The foundation of insurance is probability and statistics. By pooling a large number of homogeneous exposures an insurance company can predict with a given ...
Nonparticipating life insurance under which the first few annual premiums are smaller than would be the case under a traditional nonparticipating policy. While the maximum amount of these ...
Physical, moral, or financial circumstance of a life insurance applicant that sets him or her apart from a physically, morally, and financially sound standard applicant. The underwriting ...
National agency supported by property insurance companies. The bureau is used by companies that do not have their own claims adjusters. ...
Provision in ocean marine cargo policies to limit an insurance company's liability for partial losses; the company has liability only for losses that exceed a stipulated percentage of the ...
Provision in some disability income policies that provides a monthly income benefit to a disabled insured for as long as he or she remains disabled according to the definition of disability ...
Very junior issues of debt, according to explicit statements in the indenture, which rank after other unsecured debt. ...
Frequency of premium payment; for example annually, semiannually, quarterly, or monthly. ...
Monthly income payment from a disability income insurance policy made to the insured wage earner when income has been interrupted or terminated because of illness, sickness, or accident ...
Have a question or comment?
We're here to help.