Statutory Restriction
Limitation imposed on insurance companies by state law. States oversee the insurance industry, being responsible for making certain that the rates are fair, reasonable, and adequate, and that among other things, the companies that write insurance in the state are financially sound and able to pay future claims. To this end, the states restrict the types of investments insurance companies can make with their premium dollars, and they control insurers' relationships with insureds by guaranteeing certain minimum rights to insureds.
Popular Insurance Terms
Common element in property insurance that excludes electrical damage or destruction of an appliance unless the damage is caused by a resultant fire. ...
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 ...
A ceding company's premium to which the reinsurance premium factor is used to produce the reinsurance premium. ...
Contractual rights to a stipulated percentage of the increase in the value of an insurance agency over a given future period of time. They are used to convey a percentage of the increase in ...
Statistical procedure applied to the data that comprises a mortality table. It is designed to smooth out the irregularities in that data believed to not be truly indicative of the ...
Provision for coverage for buildings and personal property within the simplified commercial lines portfolio policy (sclp). The buildings and personal property coverage may be classified in ...
Obligation of the insured to report losses from a covered peril to the insurance company or its representative as soon after its occurrence as possible. ...
Modification of the charitable remainder uni-trust through which the beneficiaries receive a specified percentage of the assets' value in the trust usually paid out on a quarterly basis. If ...
Form provided for an inspection report. ...
Have a question or comment?
We're here to help.