This broad type of coverage was developed for shipments that do not involve ocean transport. Covers articles in transit by all forms of land and air transportation, including bridges, tunnels, and other means of transportation and communication. Floaters that cover expensive personal items such as fine art and jewelry are included in this category.
An insurer’s inability to pay debts. Insurance insolvency standards and the regulatory actions taken vary from state to state. When regulators deem an insurance company is in danger of becoming insolvent, they can take one of three actions: place a company in (1) conservatorship or (2) rehabilitation, if the company can be saved; or (3) liquidation, if salvage is deemed impossible. The difference between the first two options is one of degree — regulators guide companies in conservatorship, but direct those in rehabilitation. Typically the first sign of problems is an inability to pass the financial tests that regulators administer as a routine procedure. (See liquidation; risk-based capital)
Risks for which it is relatively easy to get insurance and that meet certain criteria. These include being definable, accidental in nature, and part of a group of similar risks that is large enough to make losses predictable. The insurance company also must be able to come up with a reasonable price for the insurance.
A system that makes large financial losses more affordable by pooling the risks of many individuals and business entities and transferring them to an insurance company or other large group in return for a premium.
A group of insurance companies that pool assets, enabling it to provide an amount of insurance substantially larger than can be provided by an individual company, to insure large risks such as nuclear power stations. Pools may be formed voluntarily or mandated by the state to cover risks that can’t obtain coverage in the voluntary market, such as coastal properties subject to hurricanes. (See joint underwriting association (JUA))
insurance regulatory information system (IRIS)
Uses financial ratios to measure insurers. financial strength. Developed by the National Association of Insurance Commissioners. Each individual state insurance department chooses how to use IRIS.
An insurer that sells exclusively via the Internet.
joint underwriting association (JUA)
Insurers which join together to provide coverage for a particular type of risk or size of exposure that is difficult to obtain coverage for in the regular market, and which share in the profits and losses associated with the program. JUAs may be set up to provide auto and homeowners insurance and various commercial coverages, such as medical malpractice. (See assigned risk plans; residual market)
The Vehicle Insurance Rating is a 1 - 5 score indicating which vehicle's insurance cost provides the best value.
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Vehicle Insurance Ratings
The Vehicle Insurance Ratings are compiled by our data partner, Vincentric. The ratings are based on the anticipated insurance costs of a vehicle when compared to similarly priced vehicles within the same category (SUVs, crossovers, sedans, etc.). To determine the ratings, Vincentric uses a series of statistical models to determine the insurance cost patterns relative to the cost of the vehicle. A higher Vehicle Insurance Rating value indicates that a vehicle is less expensive to insure that other vehicles in that category. Conversely, a lower rating suggests that the vehicle may cost more to insure.