Treasury Inflation Protection Bonds (tips)
Bonds issued by the United States Treasury that pay a semiannual interest rate tied to the Treasury auction plus an additional interest rate tied to the rate of inflation during this semiannual period. The rate of inflation is measured by the increases or decreases in the Consumer Price Index for Urban Consumers (CPI-U). The TIPs are issued in minimum denominations of $1000 with varying maturities. The additional rate of inflation interest adjustment is paid on the principal of the bond at maturity. Taxes are paid annually on both the interest earned on the TIP as well as the additional rate of inflation interest adjustment.
Popular Insurance Terms
Model act written and published by the national association of insurance commissioners (naic) whose purpose it is to regulate brokers who control insurance companies. The act permits the ...
Method of pricing property and liability insurance. It uses charges and credits to modify a class rate based on the special characteristics of the risk. Insurers have been able to develop a ...
Cancellation of an insurance policy on the date that policy becomes effective. This type of cancellation does not require any fees to be paid to the insurance company. ...
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Statistic indicating the degree of dispersion in a set of outcomes, computed as the arithmetic mean of the differences between each outcome and the average of all outcomes in the set. ...
Form of insurance whereby the buyer (reinsurer) assumes the entire obligation of the cedent company, effected through the transfer of the policies from the cedent to the books of the ...
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