What is the Definition of Insurance Score?

What is the Definition of Insurance Score?

Insurance scores are confidential rankings based on credit information. This includes whether the consumer has made timely payments on loans, the number of open credit card accounts and whether a bankruptcy filing has been made. An insurance score is a measure of how well consumers manage their financial affairs, not of their financial assets. It does not include information about income or race. Studies have shown that people who manage their money well tend also to manage their most important asset, their home, well. And people who manage their money responsibly also tend to drive a car responsibly. Some insurance companies use insurance scores as an insurance underwriting and rating tool.

Source: Insurance Handbook A guide to insurance: what it does and how it works | https://www.iii.org/

Label: Insurance
Theme: Dictionary of Insurance Terms

Other Questions: What is the definition of Annuity?

What is the Definition of Insurance Score?

What is the Definition of Insurance Score?

You can find random definition and meaning of insurance terms below:

Meaning of Graded Premium Policy in Insurance Terms

A type of modified-premium whole life policy that calls for three or more levels of annual premium payment amounts, increasing at specified points in time—such as every three years—until reaching the amount to be paid as a level premium for the rest of the life of the policy.

Meaning of Graduated Driver Licenses in Insurance Terms

Licenses for younger drivers that allow them to improve their skills. Regulations vary by state, but often restrict nighttime driving. Young drivers receive a learner’s permit, followed by a provisional license, before they can receive a standard driver’s license. GRAMM-LEACH-BLILEY ACT Financial services legislation, passed by Congress in 1999, that removed Depression era prohibitions against the combination of commercial banking and investment banking activities. It allows insurance companies, banks and securities firms to engage in each others’ activities and own one another.

Meaning of Gross Annuity Cost in Insurance Terms

A monetary amount equal to the present value of future periodic income payments under an  annuity contract, calculated on a gross basis, with a specific provision for expense loading. Contrast with Net annuity cost.

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