Naic: Investment In Medium Grade And Lower Grade Obligations National Association Of Insurance Commissioners Model Law
Model state law of the NAIC that stipulates that the total sum of medium grade bonds (bonds carrying a rating of 3, assigned by the Securities Valuation Office of the NAIC) and lower grade bonds (bonds carrying a rating of 4, 5, or 6, assigned by the Securities Valuation Office of the NAIC) cannot be greater than 20% of the insurance company's admitted assets. The total sum of bonds rated 4, 5, or 6 cannot exceed 10% of the company's admitted assets. In addition, no more than 3% of the admitted assets can be in bonds carrying a rating of 5 or 6; and no more than 1% of the admitted assets can be in bonds carrying a rating of 6. Bonds are rated by the Securities Valuation office from 1 (highest rating representing debt obligations of companies in excellent financial condition) to 6 (lowest rating representing debt obligations of companies in very poor financial condition).
Popular Insurance Terms
Procedure in which a home office interviewer (who may or may not have underwriting experience) interviews applicants on the telephone. The questions asked the applicant are automated and ...
Type of charitable remainder trust (CRT) that pays interest income for life or for a specified term to a non charitable beneficiary. The remainder of the interest is received by a charity. ...
Bodily injury liability and property damage liability expressed as a single sum of coverage. ...
Right of a policyholder, in life insurance with cash values, to continue full coverage for a limited period, as shown in a table in the policy, with no further premiums payable. ...
Individual who works in the home office of an insurance company and performs the function of underwriting to determine if an applicant is insurable at standard rates, substandard rates, ...
Premium required by an insurance company for plans subject to premium adjustment. The initial provisional premium is paid to put a commercial property or liability insurance policy into ...
Coverage that is renewable at the option of the insured, who is not required to take a medical examination. Regardless of physical condition, the insured must be allowed to renew the policy ...
Probability of one's living to a specific age according to a particular mortality table. Life expectancy is the beginning point in calculating the pure cost of life insurance and annuities ...
Annuity contract. If the annuitant dies before receiving income at least equal to the premiums paid, a beneficiary receives the difference in installments. If the annuitant lives after the ...
Have a question or comment?
We're here to help.