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How much money does an insurance company have to have in reserve under the legal reserve system?
Wiki User
∙ 15y ago
Enough to meet all of their contractual obligations to policyholders. This includes guaranteed minimum interest rate calculations on all permanent life insurance and fixed annuity contracts. It also includes all obligations under term insurance policies that are in good force= premiums are up to date. The statutory accounting system enforced under the legal reserve system is what protects policy holders. Note that banks and brokerage firms have been able to 'play games' under the GAAP [generally accepted accounting procedures] guidelines, which is a serious part of the current economic mess.
Thank God, that insurance is state regulated and structured under this legal reserve system; can you imagine the turmoil if the feds regulated insurance and used GAAP!
Recent rulings by the SEC, as well as the latest appointment by the new administration to have Mary Schapiro (formerly head of FINRA) is a serious threat to the continued sanctity and safety of our legal reserve insurance system in America. Ms. Schaprio and her staff at FINRA failed miserably to control the egregious actions of the brokerage industry as part of the mortgage securitization mess in America. The brokerage firms have a very strong 'lobby'. There is a serious threat to the financial future of our nation, and it rests not government printing largesse in the form of supposed "stimuli" packages. It rests with the effort already underway for the Federal Government to step in and re-regulate the insurance industry. The state insurnace commissioners under [NAIC] have a real test of courage coming. Let's pray that they are up to the task.
Wiki User
∙ 15y ago
Insurance companies under the legal reserve system are required to have a minimum amount of policyholder reserves, which is typically based on actuarial calculations and regulatory requirements. The exact amount can vary depending on the type of insurance and the regulations of the specific jurisdiction, but the reserves must be sufficient to cover potential claims and obligations.
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What is the current legal reserve ratio?
The legal reserve ratio is the minimum percentage of deposits that banks are required to keep in reserve, as mandated by the central bank. The specific ratio varies by country and may change over time based on economic conditions and monetary policy. It is used to ensure banks have enough liquid assets to cover withdrawals and maintain stability in the financial system.
Can neighbor sue me for damages after insurance paid?
Yes, a neighbor can still sue you for damages even if your insurance has paid out. Insurance coverage does not prevent individuals from pursuing legal action against you if they believe you are responsible for the damages incurred. It is important to consult with a legal professional to understand your rights and options in such a situation.
Is it legal in NC to purchase car insurance with expired license?
No, it is generally not legal to purchase car insurance with an expired license in North Carolina. Insurance companies typically require a valid license in order to provide coverage. It's important to renew your license before obtaining car insurance.
What are the legal requirements for selling insurance in Alabama?
In Alabama, individuals selling insurance must be licensed by the Alabama Department of Insurance. Applicants must pass an examination, complete pre-licensing education, and submit an application with required fees. A sponsoring insurance company may also be required for certain types of insurance.
Can a person sue a homeowner after suing the home insurance company for the same accident?
Yes, it is possible for a person to sue a homeowner after suing the home insurance company for the same accident. The homeowner's insurance policy may not cover all damages or there may be additional claims the person wishes to pursue against the homeowner that are not covered by the insurance policy. However, it's important to consult with a legal professional to discuss the specifics of the situation.
What is the current legal reserve ratio?
The legal reserve ratio is the minimum percentage of deposits that banks are required to keep in reserve, as mandated by the central bank. The specific ratio varies by country and may change over time based on economic conditions and monetary policy. It is used to ensure banks have enough liquid assets to cover withdrawals and maintain stability in the financial system.
Old line legal reserve life insurance company Texas predential Galveston?
Mu uncle found an old live insurance policy and was wondering if it was worth anything/ Policy number is 272892
Is Legal and General the name of an insurance company?
Yes, Legal & General is an insurance company. They offer life, home, landlord, lifestyle cover, and pet insurance.
Functions of insurance company's legal department?
An insurance company's legal department is there to handle situations that require court appearances or may involve lawsuits. The legal department will represent the company.
Can your child be a beneficiary under your life insurance policy if you do not have legal custody of her and can a life insurance company require that you be their legal guardian?
Yes
What are some of the larger insurance companies in the UK?
One of the larger insurance companies in the UK is the insurance company Legal & General. Another of the larger insurance companies is the company Aviva.
Is there any legal complaints against American equity investment life insurance company?
Yes, there are many legal complaints against American Equity Investment Life Insurance Company. Most of the legal complaints touch on compensation.
What type of insurance is sold by the Great American Insurance Company?
The Great American Insurance Company specializes in property insurance and casualty insurance for companies. These insurance types protect the companies from property damage and legal fees.
Will your insurance company terminate you if you do not complete a deposition?
Possibly. A deposition is a legal document, the results of an interview concerning a particular issue. If your insurance company needs to depose you (interview you under oath with a legal transcript) and you won't cooperate with them, there's a good chance that your insurance company won't cooperate with you on the issuance of an insurance policy.
What happens if the beneficiary of a life insurance policy is deceased and there is no will?
In case of death of the policy holder, with beneficiary already deceased and there is no will, the Insurance Company will pay only to the Legal Heir of the Policy Holder. The death claim will be kept in abeyance till the legal heir proves his legal identity to the satisfaction of the Insurance Company.
Is it legal for an insurance company to raise your homeowners deductible by notifying via email?
no
Do you have to accept recondition parts to repair your car in the state of Georgia from your insurance company?
No!! It's not the insurance that tells you how to fix your car, it is you who has the legal right to tell the insurance company. I learned this the hard way!
