Yield On Assets
Annual or other periodic rate of return on investments. Because life insurance companies act as custodians of premiums for many years, until money must be paid out in death benefits or other types of claims, they invest it to achieve a yield adequate to meet these obligations. Yield is also important to the policy owner of life policies that include a specific investment element. For example, some annuities and cash value life insurance policies pay a yield that approximates the market rate the policyholder could get elsewhere. While other contracts, such as a variable annuity and variable life insurance do not guarantee a specified yield, they pay one based on the performance of the underlying investments.
Popular Insurance Terms
Act in which volunteers of nonprofit organizations and government entities do not incur liability if they are acting within the scope of their volunteer activities, their actions do not ...
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Professional designation conferred by the International Foundation of Employee Benefit Plans and the Wharton School of the University of Pennsylvania. In addition to professional business ...
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Risk that premiums and reinsurance, as well as other receivable instruments, will not be collected. ...
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Same as term Captive Insurance Companies Association (CICA): trade association located in New York City, consisting of approximately 200 captive insurance companies. The objective of the ...
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