A market where debt and equity are traded. By selling securitised bonds (re)insurers transfer insurance risk to the capital market. See CATASTROPHE BONDS; SECURITISATION.
Insurance Encyclopedia
Capital markets
Markets in which financial instruments such as stocks and bonds that mature in more than 1 year are traded.
Capital protected annuity
An annuity under which the insurer guarantees to make total gross annuity payments equal to the purchase price regardless of the date of death.
Capital provider
As regards a Lloyd’s syndicate, its member(s). As regards a company, its shareholders.
Capital redemption
business other than life insurance whereby in return for one or more premiums a sum or series of sums is to become payable to the insured in the future.
Capital redemption policy
Policies, unrelated to human life, whereby a company regularly sets aside money so that on maturity it can retire its bonds, debentures or preferred stock. The so-called ‘sinking fund’ also enables the company to replace wasting assets such as leases (leasehold redemption policies). The policies are long-term business but not part of the life fund.
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A Policy that provides a specific sum of money after a specific interval (also known as a Sinking Fund Policy)
Capital stock
Investment certificates that represent the amount of money or property contributed by shareholders invested to provide money for a corporation to do business and buy equipment.
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The ownership of a corporation as expressed in individually or jointly held shares of stock.
Capital stock company
An insurance company owned by stockholders rather than by its policyholders.
Capital Stock Insurance Company
A Company having an addition to surplus and reserve funds and capital fund paid in by Stock Holders.
Capital sum
A specified payment for accidental dismemberment or loss of sight.