Definition of "Matching"
Requiring assets and liabilities of an insurance company to go up or down together on a proportional basis. The duration of the asset and liability should be approximately the same. For example, an insurance policy of 12 months in duration should be identified with an asset that matures in 12 months. As interest rates go up, thereby requiring the insurance company to pay a higher return to its policyholders, the interest earned on investments should go up on a proportionate basis.
Popular Insurance Terms
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Insurance coverage that protects the exporter (even though the exporter may be in total compliance with the terms and conditions of the contract) in the event a foreign government calls the ...
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Individual who is legally responsible for taking care of another individual (s) who is deemed to be incapable of managing his/her own affairs. For example, children under the age of ...
Clause in a life insurance policy that states that once the cash value exceeds the net single premium (based on current interest and mortality rates) required for the policy to become ...
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