by TheBusinessProfessor | Feb 23, 2025 | Insurance & Risk Management
What is a Self-Funded (Self-Insured) Plan?A Self-Insured or Self-Funded plan refers to a situation where the employer takes on the financial risk for its employees with health care benefits. In plain terms, Self-Insured employers fund claims out-of-pocket as they are...
by TheBusinessProfessor | Feb 23, 2025 | Insurance & Risk Management
What is a Performance Bond?A performance bond (or contract bond) is a guaranty issued by a third-party guarantor (also known as a surety) to one party to a service contract. The guarantor assumes financial responsibility for the service provider’s failure to...
by TheBusinessProfessor | Feb 23, 2025 | Insurance & Risk Management
What is a Private-Passenger Auto Insurance Policyholder Risk Profile?Private-Passenger Auto Insurance Policyholder Risk Profile is the estimated risk that an insurance company will undertake by covering a certain automobile operator using an insurance policy. With the...
by TheBusinessProfessor | Feb 23, 2025 | Insurance & Risk Management
What is a Rating Agency?A rating agency is a private organization that evaluates the financial strength or weakness of companies and government establishments. A rating agency provides an assessment of the creditworthiness of debt securities in private and public...
by TheBusinessProfessor | Feb 23, 2025 | Insurance & Risk Management
What is the Liability Risk Retention Act?Liability Risk Retention Act, LRRA is a federal law that got the approval of the United States in 1986. Contained in the act is the ability of businesses, professionals and cities to obtain liability insurance. Liability...
by TheBusinessProfessor | Feb 23, 2025 | Insurance & Risk Management
What is a Participating Community?The National Flood Insurance Program, NFIP, was initiated in 1968 by the US Congress. This program provides flood insurance for participating communities and property owners. To benefit from NFIP, property owners in participating...
