Liquidation And Rehabilitation
Definition of "Liquidation and rehabilitation"
Taking over of an insurance company's assets by the State Insurance Commissioner when examination of the annual report reveals that the company is in substantial financial difficulty. The State Insurance Commissioner will then operate the company in what is deemed to be the best interest of the policy owners, insureds, and creditors. If the State Insurance Commissioner believes it is possible to save the company, rehabilitation (reorganization of the company's structure) may be ordered; if salvage is deemed impossible, liquidation may be necessary.
Popular Insurance Terms
Form of deferred annuity; a life insurance policy that usually guarantees from 120 to 180 monthly income payments to the annuitant at retirement. If the annuitant dies during the deferral ...
Financial analysis method established by the national association of insurance commissioners (naic) to detect problems of property and casualty insurance companies and life and health ...
Relationship of gains from investments (including realized capital gains) resulting from insurance operations to earned premiums. ...
Performance of a deed or function. Certain acts are prohibited from coverage in insurance. For example, if the insured commits a felony, the insured's beneficiary cannot collect under the ...
Provision found in current assumption whole life insurance policies under which the insurance company retains the contractual right to recalculate the premium (after a minimum period of ...
Value of an insurance company or other company that consists of capital and surplus and an estimated value for business on the company's books. ...
Bond guaranteeing that a contractor will perform under the contract in accordance with all specifications of the bid submitted. ...
Trust established under the auspices of the Internal Revenue Code that permits the maintenance of a separate account within the employer's defined benefit pension plan from which to pay the ...
Government agency, under the McCarran-Ferguson act (public law 15), that has no authority over insurance matters to the extent the states regulate insurance to the satisfaction of Congress. ...
Have a question or comment?
We're here to help.