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JOINT AND SURVIVOR
ANNUITY |
An annuity with two
annuitants, usually spouses. Payments continue
until the death of the longest living of the
two.
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JOINT UNDERWRITING
ASSOCIATION / JUA |
Insurers which join
together to provide coverage for a particular
type of risk or size of exposure, when there are
difficulties in obtaining coverage 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.
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JUNK BONDS |
Corporate bonds with
credit ratings of BB or less. They pay a higher
yield than investment grade bonds because
issuers have a higher perceived risk of default.
Such bonds involve market risk that could force
investors, including insurers, to sell the bonds
when their value is low. Most states place
limits on insurers’ investments in these bonds.
In general, because property/casualty insurers
can be called upon to provide huge sums of money
immediately after a disaster, their investments
must be liquid. Less than 2 percent are in real
estate and a similarly small percentage are in
junk bonds.
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A coverage that protects
businesses engaged in electronic commerce from losses
caused by hackers.
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A percentage or dollar amount
added to a homeowner’s insurance policy to limit an
insurer’s exposure to loss from a hurricane. Higher
deductibles are instituted in higher risk areas, such as
coastal regions. Specific details, such as the intensity
of the storm for the deductible to be triggered and the
extent of the high risk area, vary from insurer to
insurer and state to state. |
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