GENERAL KNOWLEDGE LATEST BOOK

Navneet General Knowledge full PDF Book

Navneet General Knowledge full PDF Book
 August 24, 2018



The state regulator determines and promulgates the rates, classifications, forms, etc. to which all insurers must adhere. Insurers are usually permitted to deviate from state prescribed rates, classifications, forms, etc., with the approval of the state regulator. The insurer need not file rates, rules, etc. with the state regulator. Rates, rules, etc. become effective when used. The state regulator may periodically examine insurer(s) to ensure compliance with the law. Generally, there are record maintenance requirements, under which insurers must make their rating systems available to the state regulator for examination. A state regulator may order discontinuance of the use of the material at any time if it is not in compliance with the law. The state regulator normally must hold a hearing to establish noncompliance.

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Reinsurance is insurance for insurance companies. It is a way of transferring or “ceding” some of the financial risk insurance companies assume in insuring cars, homes and businesses to another insurance company, the re insurer. Reinsurance, a highly complex global business, accounted for about 9 percent of the U.S. property/casualty insurance industry premiums in 2008, according to the Reinsurance Association of America. The reinsurance business is evolving. Traditionally, reinsurance transactions were between two insurance entities: the primary insurer that sold the original insurance policies and the re insurer. Most still are. Primary insurers and re insurers can share both the premiums and losses or re insurers may assume the primary company’s losses above a certain dollar limit in return for a fee.






However, risks of various kinds, particularly of natural disasters, are now being sold by insurers and re insurers to institutional investors in the form of catastrophe bonds and other alternative risk-spreading mechanisms. Increasingly, new products reflect a gradual blending of reinsurance and investment banking. After Hurricane Andrew hit Southern Florida in 1992, causing $15.5 billion in insured losses at the time, it became clear that U.S. insurers had seriously underestimated the extent of their liability for property losses in a mega disaster. Until Hurricane Andrew, the industry had thought $8 billion was the largest possible catastrophe loss. Re insurers subsequently reassessed their position, which in turn caused primary companies to reconsider their catastrophe reinsurance needs.




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