Investments And Regulation
Definition of "Investments and regulation"
Life insurance:
- Bonds most state regulations permit life insurance company investments in debentures, mortgage bonds, and blue chip corporate bonds.
- Stocks(a) preferred stock investment is limited to 20% of the total stock of any one company, not exceeding 2% of a company's admitted assets; (b) common stock investment is limited to the lesser amount of 1% of the ADMITTED ASSETS or the policy owner's surplus.
- Mortgage investment is unlimited in first mortgages on residential, commercial, and industrial real estate.
- Real Estate investment is limited to 10% of admitted assets.
- DOMESTIC INSURERS and FOREIGN INSURERS must invest according to the minimum capitalization requirement in federal, state, or municipal bonds.
- Company funds in excess of minimum capitalization and reserve requirements can be invested in federal, state, or municipal bonds as well as stocks or real estate. The insurance company is limited in its investment in any one firm up to no more than 10% of its admitted assets; its real estate investment can be no more than 10% of its admitted assets.
Popular Insurance Terms
Ocean marine insurance covering one trip. Ocean marine insurance is written either for a specific time period or per trip. A voyage policy is usually written for cargo, whereas a time ...
Provision found in property and liability insurance policies that mandates that the insured notify the insurance company as soon as possible following the occurrence of a covered loss under ...
Percentage of first year's premium paid to compensate an insurance agent. This is known as the "First Years" to show how much new business the agent is generating, compared with renewal ...
Coverage in a separate policy or as an endorsement to the commercial general liability (CGL) form, for liability exposures for an employee who drives a leased car or his or her own ...
Investments restricted to short-term Treasury bills (T-bills) and repurchase agreements secured by Treasury bills. These T-bills are secured by the full faith and credit of the Unites ...
Modified participating level coverage permanent life insurance policy under which the dividends are credited to the policy, thereby reducing the premiums below that usually charged for an ...
Supplementary life insurance reserve required by state regulators when the gross premium is lower than the valuation premium. Some life insurers are able to charge policyholders a premium ...
Coverage for extra expenses associated with the reconstruction of a damaged or destroyed building where zoning requirements mandate more costly construction material. This endorsement is ...
Latin phrase for "The facts speak for themselves." This is a rule of evidence under which an individual is deemed, under certain specific circumstances, to be negligent by the mere ...
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