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
Purchasing bond investments that mature at different time intervals. ...
Time interval between the date benefits end under Social Security and the date these benefits resume. For example, survivor benefits are paid only as long as the parent (if less than age ...
Professional designation earned after the successful completion of four national examinations given by the insurance institute of America (IIA). Covers such areas of expertise as insurance ...
No limitation under a contributory pension plan of an employee's right to receive vested benefits, regardless of whether or not the employer withdraws contributions. ...
Income paid to a worker who is temporarily disabled by an injury or sickness that is not work related. Compare with workers compensation benefits, which are available only to workers ...
In property insurance, contract section providing for reimbursement for removal of debris resulting from an insured peril. The amount of reimbursement under the homeowners insurance policy ...
1961 federal legislation that allows the U.S. Export-Import Bank to set up insurance protection for U.S. exporters against credit risk and political risk in order to help make U.S. exports ...
Means of setting life insurance reserves based on expected mortality rates as reflected in a mortality table. ...
Amount of the loss absorbed by an insurance company after deducting any reinsurance applicable to the loss, as well as subrogation and ABANDONMENT AND SALVAGE rights. ...
Have a question or comment?
We're here to help.