Field underwriting occurs when an agent gathers pertinent information about the proposed insured and reports that information on the application blank so the home office underwriter can make an underwriting decision. In the United States, a system used by the NAIC to evaluate financial statement information in order to determine an insurer s financial condition. An organization that helps channel funds through an economy by accepting the surplus money of savers and supplying that money to borrowers, who pay to use the money. Insurance companies are financial institutions. A financial institution that borrows money on its own account and loans money to other borrowers.
Insurance companies are financial intermediaries.
For example, a financial reinsurance transaction can improve the profit or surplus of the ceding company or aid the company s tax planning. See surplus relief. The financial institutions that help consumers and business organizations save, borrow, invest, and otherwise manage money . A lump sum payment by an insurer to a disabled insured that extinguishes the insurer s responsibility under the disability contract. Also known as a buy-out or commutation.