Amount at Risk

Amount at Risk

1. The difference between the amount an insurer must pay if an insured event occurs and the reserves from which it makes payments.

2. The different between the amount of a loan and the amount the borrower still owes the lender, including interest.

3. The difference between the cash value of a life insurance policy and the amount the insurer must pay if the policyholder dies.
References in periodicals archive ?
The development, which is attributable to an agreement that Reinsurance Group of America has accomplished recently, will make RGA Reinsurance carry out retroceding of around $200 billion of active individual life reinsured amount at risk.
For example, if the monthly claim amount for the sample policy is $4,167 (l/24th of the lace amount), there will be changes that occur to the policy's Face Amount, Account Value and Net Amount at Risk (See Table 1).
Accordingly, the nonguaranteeing members of the LLC, who had previously included that portion of the qualified nonrecourse financing in their amount at risk and who have not guaranteed any portion of that debt, may no longer include that amount of debt in determining their amount at risk.
Either can work well since they can provide the desired yield to get the cash value escalated and reduce the amount at risk (thereby controlling M&E expenses).
If the fund value is high, the amount at risk is low.
The Bank for International Settlements (BIS) collects both notional amounts and market values in its derivatives statistics and it is possible to use the BIS statistics to determine the amount at risk in the ISDA survey results.
The amount at risk includes: (1) the amount of money and the adjusted basis of property contributed to an activity; (2) amounts borrowed with respect to the activity to the extent the taxpayer is personally liable for repayment or has pledged property, other than property used in the activity, as security for the borrowed amount; and (3) generally, amounts borrowed with respect to the activity of holding real property for which no person is personally liable for repayment (qualified nonrecourse financing) (see Sec.
The current European solvency regime, Solvency I, is a simplistic system that applies a small number of factors to accounting positions (premiums or reserves for nonlife and reserves and amount at risk for life reserves) to determine an insurer's capital requirements.
The net amount at risk on GMDB features was $494 million as of Sept.
1) However, an issue often overlooked by shareholders and tax practitioners is whether shareholders have a sufficient amount at risk with regard to the investment in the S corporation.
Offers a choice of three innovative fee options for any optional death benefit selected - an Asset Based Fee, a Death Benefit Based Fee, or a Net Amount at Risk Fee.
For income tax purposes, X and Y can deduct the $20,000 loss if each has sufficient basis, amount at risk and meets the PAL rules.