What is an Insurance Underwriter? An insurance underwriter analyzes and assesses the risks of providing insurance to individuals and companies and establishes insurance premiums. Underwriters use software, actuarial data, and statistical analysis to evaluate the risk of a future event that would require the insurance company to compensate an insured individual. For example, an underwriter would analyze…
What is an Insurance Premium? An insurance premium is the amount of money that an individual is required to pay to an insurance company in order to receive insurance coverage. Your insurance company will pool together all the money that individuals pay for premiums, which will then be paid out to individuals who need to…
What is an Insurance Claim? An insurance claim is a request made by an insured individual to receive coverage from an insurance company. The claim is made after a covered incident occurs. The compensation that the insured individual receives will cover financial losses resulting from the incident. After an insurance claim is filed, the insurance…
What is Insurance? Insurance is a contract, also referred to as a policy, where an individual is protected from financial losses by an insurance company. In order to receive protection, the company will require you to pay a fee called a premium. In return, you will be provided with a sum of money if you…
What is Index Investing? Index investing is a passive investment method achieved by investing in an index fund. An index fund is a fund that seeks to generate returns from the broader market by tracking an index. The S&P 500 is the most popular index to track, with a historical annual return of 10%. Understanding…
What is Import Substitution Industrialization (ISI)? Import substitution industrialization (ISI) is an economic policy that favors the development of domestic industries and the reduction of reliance on manufactured foreign imports. ISI was a prominent policy in the 20th century for developing countries seeking to reduce their dependence on developed countries, with the goal to reach…
What is Imputed Interest? Imputed interest is the interest that is estimated to be collected by the lender, regardless of what the lender actually receives. Tax collection agencies use imputed interest to collect tax revenue on below-market loans and zero-coupon bonds. How to Calculate Imputed Interest Tax Implications – Base Scenario Generally, lenders must report…
What is an Income Annuity? An income annuity, also known as an immediate annuity, is an annuity that is contractually designed to start paying income as soon as the policy is started. Income annuities can be funded as soon as the policy begins. In addition, they may be annuitized immediately, giving the individual extra freedom…
What Does In-House Mean? In-house, or insourcing, is a term used in business to describe the utilization of internal sources rather than outsourcing for activities such as hiring and operations. In-House vs. Outsourcing The performance of operational duties and activities is an increasingly important aspect within a business that requires educated cost allocation to become…
What is Per Capita Income (PCI)? Per capita income (PCI) or “average income” is the measurement of average income per person in a specific country, city, or region within a definitive time period. Used primarily in economics, PCI utilizes average income to calculate and present the standard of living and quality of life for a…
