Personal Finance

Conditional Binding Receipt A conditional binding receipt is a contract document that acknowledges receipt of a binding offer and indicates that the offeror is conditionally bound to accept the offer if certain conditions are met. Key Elements of a Conditional Binding Receipt: Acknowledgement of Offer: The receipt acknowledges the offer made by the offeror and […]

Term Plan A term plan is a financial plan that covers a specific period, typically one to five years. It outlines a person’s financial goals and the steps necessary to achieve them. Components of a Term Plan: 1. Financial Goals:– Specific objectives to be achieved within the defined time frame.- Examples include saving for a […]

Buyout Settlement Clause Standard Form: “`Buyout Settlement Clause In the event of a buyout offer, the parties agree to negotiate in good faith to reach a settlement that is mutually satisfactory to both parties. Such settlement may include, but is not limited to, cash payments, stock options, or other forms of compensation. The following factors […]

Sure, here’s an explanation of reinsurance credit: Reinsurance credit is an accounting entry made by a reinsurer to its policyholder in reimbursement for amounts paid to the reinsurer under a reinsurance treaty. It typically represents a payment made by the reinsurer to the policyholder for covered losses. Essentially, reinsurers purchase protection against losses from their […]

Sure, here’s a definition of reinsurance ceded: Reinsurance ceded refers to the portion of a loss that a reinsurer takes on itself after sharing it with another reinsurer through reinsurance. It’s the amount the original reinsurer expects to pay based on the reinsurance treaty terms. In other words, it’s the retained portion of a loss […]

Claim Settlement Ratio The claim settlement ratio is a measure of an insurance company’s ability to settle claims quickly and fairly. It is calculated by dividing the total amount of claims paid out by the total number of claims filed. Formula: Claim Settlement Ratio = (Total Claims Paid) / (Total Claims Filed) * 100% Interpretation: […]