Business is war.
Pet insurance is a type of insurance that helps pay for your pet’s medical care. You pay a little bit each month, which is called a premium. Then, if your pet gets sick or hurt, the insurance company pays most of the vet bills. Pet insurance is kind of like health insurance for humans. It…
An alien insurer is an insurance company from a country other than the United States that wants to sell insurance in the U.S. Even though the insurer is from a different country, it still has to follow the insurance rules and laws in each U.S. state where it does business. Why are they called “alien”…
Algorithmic trading, or algo trading, is when computers trade stocks, bonds, and other things in financial markets. Instead of a human stock trader deciding to buy or sell, a computer program does the trading. The computer follows a set of rules to make these choices. These rules are put into the computer as an algorithm….
An aleatory contract is a particular type of agreement. Both parties know precisely what they will give and get in a standard contract. However, in an aleatory contract, what people give or get depends on something uncertain that will happen in the future. Usually, this uncertain event is a matter of chance, like a coin…
An Aktiebolag, or AB for short, is a company in Sweden. It is the Swedish word for a limited company or corporation. Most companies in Sweden are Aktiebolags. What is an Aktiebolag? An Aktiebolag is its own “legal person.” This means it can own stuff, borrow money, hire people, and get sued separately from the…
An agreed-value policy is a special kind of car insurance people get. When you get this kind of policy, you and the insurance company say how much your vehicle is worth. You both “agree” on the “value,” so it is called an “agreed value” policy. How is agreed value different Most regular car insurance policies…
Aggregate Stop Loss Insurance is a type of insurance coverage designed for employers who self-fund their employee health benefit plans. It safeguards against unexpectedly high total claims costs during a plan year. The insurance company reimburses the employer for the excess amount if the cumulative healthcare claims exceed a predetermined limit, known as the aggregate…
Aggregate indemnity is a term used in insurance. It is the most money an insurance company will pay for all the claims from one policy, usually during a set period, like a year. The word “aggregate” means the total sum or whole amount. “Indemnity” means protection against loss or damage by paying money. So, “aggregate…
Aggregate excess of loss reinsurance is insurance that insurance companies buy. It protects them from losing too much money in a year if many people and businesses they insure have claims that cost the company a lot. How Regular Insurance Works We first need to understand how regular insurance works to understand aggregate excess of…
Acquisition accounting is the way a company tracks money and other assets when it buys another company. It is important because it affects the company’s reported profit and worth. Acquisition vs Merger An acquisition occurs when one company buys most or all of another company’s shares to gain control of that company. A merger occurs…
