Arrowsmlft.gif (338 bytes)Previous Table of Contents NextArrowsmrt.gif (337 bytes)

5
Security: Reliability of the Insurance Institution to Perform Its Insurance Obligations

Chapter Outline

  • FINANCIAL CONDITION: SOLIDITY OF THE INSURER

  • Regulation of Investments
    Regulation of Reserves
    Regulation of Capital and Surplus
    Regulation of Hazardous Financial Condition in General
    Monitoring Financial Condition
  • PROTECTION AGAINST LOSS

  • Supervision, Rehabilitation and/or Liquidation
    Guaranty against Loss: Guaranty Funds

     

    As indicated above, a fundamental function of insurance is to provide security. Consequently a major goal, if not the major goal, of insurance regulation is to assure the reliability of the insurance mechanism out of which have evolved two subsidiary goals: (1) assuring the financial solidity of the insurer and (2) providing protection against loss when (1) fails.

    Arrowsmlft.gif (338 bytes)Previous TopArrowsm.gif (337 bytes) NextArrowsmrt.gif (337 bytes)