Security Valuation
Definition of "Security valuation"
Rules used by state regulators to value securities on the books of insurance companies. Bonds with acceptable credit quality are carried at amortized value, which is the face value plus or minus the amount of any purchase discount or premium, as amortized over the life of the bond. Preferred stock is valued at cost and common stock investments at year-end market price. Valuations for impaired securities such as bonds in default are determined by the Committee on Valuation of Securities of the national association of insurance commissioners (NAIC).
Popular Insurance Terms
Synopsis of the key financial figures concerning the pension plan that is contained in the form 5500 that must be filed annually with the Internal Revenue Service. This report must be given ...
Coverage in the event that property is damaged or destroyed so that an insured cannot use the property for its intended purpose. For example, loss of use of a drill press because of ...
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Same as term: Actuarial Science: branch of knowledge dealing with the mathematics of insurance, including probabilities. It is used in ensuring that risks are carefully evaluated, that ...
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New rule entitled "Accounting and Reporting for Reinsurance of Short-duration and Long-duration Contracts," which requires the insurance company to report all assets and liabilities ...
12-month period from the date of issue of a policy as stated in its declarations section. ...
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