The amount of extra cash an insurance company needs, in addition to premiums collected, to meet its obligations.
Regressive Insurance sells insurance policies to protect against hair loss to 1980s rock bands. To date, it has generated $2 million in premiums by selling $100 million worth of coverage. All of Regressive's clients were performing as part of an all-star ensemble on the "Laser Show Tour, sponsored by Nair."
En route to a gig, their tour bus driver swerved to avoid hitting a hare on the road, causing the bus to flip, letting loose several gallons of the sponsor's hair removal product. While nobody was seriously injured, Regressive suddenly found itself with a $98 million benchmark surplus.
Related or Semi-related Video
Finance: What are lenders?27 Views
finance a la shmoop what are lenders is that a bagel company hmm okay well maybe
it doesn't matter here lenders are the people and institutions
and countries who loan money banks are lenders they loan money for small [woman walks into bank]
business for big business and well everything in between
banks are big lenders they generally focus on large amounts for big
corporations and take their spread then you have savings and loans well they're
smaller more intimate local cousins of the banks and they focus on local loans
like your local flower shop needs 25 grand in credit but lenders also sell a [flowers in a store]
special kind of loan a mortgage for when you want to buy a home and the interest
on mortgages is distinctively tax-deductible your big brother can also
be a lender that hundred bucks he loaned you yeah is not like the hundred that [sister approaches big brother]
grandmama quote loaned you unquote ie Big Brother's long does not just get
naturally forgotten his alone carries interest in newgy penalties when it's [fist appears as sister smiles]
not paid back to lenders it's people who loan money lending loaning got in there
kind of related [sister being nuggied]
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