Doverman pincher and home insurance...
#31
12-24-2009, 10:08 PM
That is exactly the game, the claims for some are spread to all.
There are regulatory guidelines for how much cash they must have on hand for the number of policies that they have written, even to the point that the realization of the revenue for a 1 year paid in full ( and multi year ) policy cannot be made until a time frame ( usually the half year mark )
What they invest the cash reserves in, is also regulated.
There are regulatory guidelines for how much cash they must have on hand for the number of policies that they have written, even to the point that the realization of the revenue for a 1 year paid in full ( and multi year ) policy cannot be made until a time frame ( usually the half year mark )
What they invest the cash reserves in, is also regulated.
#32
12-24-2009, 10:38 PM
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State regulators (aka politicians) set "acceptable" levels of statutory reserves. Insurance companies invest the remaining funds in financial vehicles to generate additional profits (sometimes losses) as they see fit.