Adequacy of coverage

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Adequacy of coverage

A test that measures the extent to which the value of an asset is protected from potential loss either through insurance or hedging.

Adequacy of Coverage

The extent to which an asset or investment is protected from loss by insurance or hedging. For example, if one owns a house, there is the risk that it could burn down. Adequacy of coverage measures the extent to which the insurance benefit covers the value of the house.
References in periodicals archive ?
Additionally, life insurance coverage adequacy has declined, according to the release: "In 2010, insured households had coverage to replace their income for 3.5 years.
Sail through insurance industry flux by focusing on consumers
Coverage Adequacy: The rating is sensitive to shifts in cyclical pledged revenue declines that would adversely affect anticipated coverage levels.
Fitch Affirms Regional Transportation Authority of Pima County, AZ's Revs at 'AA'; Outlook Stable
* For commercial lines: The best approach is to review the true business impact of a catastrophe, operational considerations, technology coverages, business interruption coverage adequacy, flood coverages, deductibles and property value coverages.
Using Sandy to educate clients: insight: the storm revealed gaps in understanding of what insurance covers--and what it doesn't
While it would be difficult to design a grand solution that addresses all catastrophe risk issues, there are many important steps that are supported by the industry and legislators, such as improved building codes and building code enforcement and education around coverage adequacy, that can help policyholders prepare in advance of a catastrophe event and recover when a natural catastrophe does strike.
Cautiously optimistic: ongoing economic uncertainty, weak investments and a spate of record-breaking catastrophes made 2011 challenging for most insurers. but executives are hopeful that firming prices, a history of success in selected markets and a little luck could make 2012 the insurance industry's turnaround year
Instead, concentrate on the broader issues of coverage adequacy. Your board is responsible for making certain that insurance protects your organization from losses that, based on the nature and scale of association operations, are reasonably foreseeable.
Your Involvement in D&O Insurance
Coverage Adequacy: The rating is based on the continuation of sound coverage and limited new issuance plans.
Fitch Rates Regional Public Transportation Authority, AZ's Revs at 'AA'; Outlook Stable
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