What is an insurance score? Actuarial studies suggest that how people manage their finances is a good indicator of how likely they are to file an insurance claim. So, in most states, insurance companies analyze your credit history to come up with your insurance score. (California, Hawaii, ...
Both ETFs and mutual funds have an "expense ratio," which is essentially the cost of being invested. For example, if you have an ETF with a 0.18% expense ratio on a $1,000 investment, you're paying $1.80 in fees a year. Because of an ETF's structure, their administrative costs tend...
An insurance company’sloss ratiois the proportional relationship of incurred losses to premiums expressed as a percentage. So, if a provider collects $1 million in premiums and forecasts $500,000 in claims, it has a 50% loss ratio.
insurance, exposure refers to the potential risk that a policyholder or insurer faces, which could result in financial loss or liability. It is the extent to which an individual or organization is vulnerable to adverse events or circumstances that may result in a claim against an insurance policy...
Operating expense ratio (OER) The ongoing management fee charged for an ETF by the fund’s sponsor. This can vary widely, with the industry asset-weighted average* OER for passively managed ETFs being 0.16%2. The asset-weighted average OER for cap weighted Schwab ETFs is just0.08%3. ...
A Single Premium Immediate Annuity (sometimes referred to as an "SPIA") may be the right annuity for you if you are looking for payments that begin right away and continue for the rest of your life or for a specified period of time. The annuity is purchased from an insurance company ...
In other words, even if the S&P dropped 50% your account balance would not show a loss. Your cost for this protection is that the insurance company only passes through to you a percentage of the possible gains in an up year. So a rate cap or participation rate cap, only allows your ...
When an insured event occurs, the policyholder files a claim with the insurance company, and if the claim is valid, the insurance company provides financial compensation to cover the losses. Risk management, on the other hand, involves a broader approach to identifying and managing risks. It ...
Loss ratios help assess the health and profitability of an insurance company. A business collects premiums higher than amounts paid in claims, and so high loss ratios may indicate that a business is infinancial distress. Unlike auto and homeowners insurance, under the ACA, health insurers do not...
This ratio is used to evaluate a firm’s financial structure and how it is financing operations. Generally, the higher the debt-to-capital ratio, the higher the risk of default. If the ratio is very high, earnings may not be enough to cover the cost of debts and liabilities. Again, wh...