Insurance

Financial and Market Conditions

Financial and Market Conditions

Financial and Market Conditions Read: Credit Scoring Many forces affect the price, availability, and security of the insurance product. Some are external, such as the state of the economy, changes in interest rates and the stock market, regulatory activity, the number and severity of natural disasters, growth in litigation and rising medical costs. Others are …

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Credit Scoring

Credit Scoring

Credit Scoring Read: Annuities The goal of every insurance company is to correlate rates for insurance policies as closely as possible with the actual cost of claims. If insurers set rates too high they will lose market share to competitors who have more accurately matched rates to expected costs. If they set rates too low …

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Annuities

Annuities

Annuities Basics Read: Reinsurance Annuities are financial products intended to enhance retirement security. An annuity is an agreement for one person or organization to pay another a series of payments. Usually, the term “annuity” relates to a contract between an individual and a life insurance company. There are many categories of annuities. They can be …

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Reinsurance

Reinsurance

Reinsurance Read: Insurance Fraud Reinsurance is insurance for insurance companies. It is a way of transferring or “ceding” some of the financial risk insurance companies assume in insuring cars, homes, and businesses to another insurance company, the reinsurer. Reinsurance, a highly complex global business, accounted for about 9 percent of the U.S. property/casualty insurance industry premiums …

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Insurance Fraud

Insurance Fraud

Insurance Fraud Read: Flood Insurance The Insurance Information Institute estimates that fraud accounts for 10 percent of the property/casualty insurance industry’s incurred losses and loss adjustment expenses, or about $30 billion a year. This fraud results in higher premiums. Fraud may be committed at different points in the insurance transaction by different parties: applicants for insurance, …

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Flood Insurance

Flood Insurance

Flood Insurance Read: Earthquakes Risk and Insurance Issues Because of frequent flooding of the Mississippi River during the 1960s and the rising cost of taxpayer-funded disaster relief for flood victims, in 1968 Congress created the National Flood Insurance Program (NFIP). It has three mandates: to provide residential and commercial insurance coverage for flood damage, to improve …

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Insurance

Insurance

Insurance Basics, Overview Read: Disability Insurance The insurance industry safeguards the assets of its policyholders by transferring risk from an individual or business to an insurance company. Insurance companies act as financial intermediaries in that they invest the premiums they collect for providing this service. Insurance company size is usually measured by net premiums written, …

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Disability Insurance

Disability Insurance

Disability Insurance Basics Read: Life Insurance Disabling injuries affect millions of Americans each year. Disability insurance, which complements health insurance, helps replace lost income if an individual is unable to work due to a disability. There are three basic ways to replace income: 1. Employer-Paid Disability Insurance This is required in most states. Most employers provide …

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Life Insurance

Life Insurance

Read: Business Insurance Life Insurance Basics Many financial experts consider life insurance to be the cornerstone of sound financial planning. It can be an important tool in the following situations: 1. Replace Income for Dependents If people depend on an individual’s income, life insurance can replace that income if the person dies. The most common example …

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