Short Rate, Short Term Insurance
Definition of "Short rate, short term insurance"
Coverage for less than one year. Insurers generally charge higher rates for short-term policies than for longer term insurance, such as an annual policy, because of the need to recoup relatively fixed administrative and processing costs over a shorter policy life; and the likelihood of adverse selection, with buyers seeking insurance only at times of the year when they know they face greatest likelihood of loss.
Popular Insurance Terms
Section of the "Unfair Trade Practices Code" of most states that declares the use of coercion to be in violation of the state code. ...
Partial payment of medical service expenses required in group health insurance, in addition to the membership fee. For example, for each visit of a physician a member may be required to pay ...
Sum that an insurance company charges a business firm to restore a property or liability insurance policy, or a bond, to its initial face value after the insurance company has paid a claim ...
Option in a participating policy under which dividends are used to purchase fully paid-up units of whole life insurance. This option deserves careful consideration by young families since ...
Insurance programs that combine finite risk insurance, reinsurance, and traditional insurance as an alternative to self insurance. These programs are long-term in duration. The objective is ...
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Insurance for private pleasure boats. Coverage is not standard, but is generally broken down into insurance for yachts, including sailboats; boats with inboard motors under marine ...
Procedure whereby there is no amortization of the employer's liability for the supplemental cost of an employee's future benefits to be paid at retirement. ...
Bonds issued by the United States Treasury that earn a fixed interest rate plus the rate of inflation. These bonds are sold at face value in denominations of $50 up to $5000 and may earn ...
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