Naic: Model Asset Valuation Act National Association Of Insurance Commissioners
Definition of "Naic: model asset valuation act national association of insurance commissioners"
Model state law providing guidelines by regulators for valuation of securities on the books of insurance companies. The act has two sections: one for valuation of fixed rate bonds and debt securities, and the other covering valuation of other securities such as common and preferred stocks as well as stock in an insurance company's subsidiaries. The model law provides that bonds be valued at cost, adjusted for any purchase discounts or premiums. Preferred and guaranteed stocks while paying dividends can be carried at par value, while other securities such as common stocks are carried at market or appraised value. Valuation of stock in subsidiaries is limited by the law to no more than the value of the subsidiary's ADMITTED ASSETS when valued as if they were on the books of the insurance company parent.
Popular Insurance Terms
Organization following the format of Lloyd's of London. ...
worth of each accumulation unit at the end of each valuation period for a variable annuity. This value is similar to that of the net asset value for a mutual fund. ...
Figure used in calculating a worker's primary insurance amount (PIA) to determine Social Security benefits in the following manner: calculate the number of years between the worker's ...
Report developed by or supplied by a credit agency to an insurer dealing with the financial standing and character of an insurance applicant. These factors are carefully weighted by the ...
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. ...
Maximum limit of liability of an insurance company for a particular claim or kind of loss that is applicable in general to all such claims or losses. This maximum limit of liability is ...
clause found in health insurance contracts that requires the insured to pay a specified percentage of the covered health care expenses. ...
Minimum amount of coverage for which a company will write a liability insurance policy. ...
Same as term Floater: coverage for property which moves from location to location either on a scheduled or unscheduled basis. If the floater covers scheduled property, coverage is listed ...
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