A requirement of property insurance policies that the property be insured to the value to replace the property in event of a loss. The cost to rebuild or replace a property is not the same as the market value of the property.
Tag: RAW
Insuritisation
The transfer of financial risk from the capital to the insurance market. A bank securitises a portfolio of corporate bonds or loans known as collateralised debt obligations or through a portfolio of credit default swaps. A special purpose vehicle buys the CDOs and passes them through to (re)insurers who are significant investors in subordinated debt based on relatively homogenous assets such as residential mortgage loans, credit card receivables or car loans. Other examples: residual value insurance, revenue guarantee products and other customised financial products. Other risks transferred to the insurance market have included project finance and royalty streams embracing film, franchises, drugs and music. The insurer forfeits repayment of interest and/or capital if there is default on the loans.
Insurrection
A revolt against civil authority or established government. It has been defined as a ‘rising of the people in open resistance against established authority with the object of supplanting it’.
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A rising of people against established authority with the object of supplanting it.