TITLE
"The NAIC Information System and the Use of Economic Indicators
in Predicting Insolvencies," Journal
of Insurance Issues, Hershbarger, Robert A.
and Ronald K. Miller, June 1986, Vol. IX, No. 2: 21-43.
ABSTRACT
There has been and will continue to be strong concern among insurance
industry regulatory, insurance company executives, and consumers
regarding insurance company solvency. Public interest in minimizing
insurance company insolvency is only natural, since insurance
companies have prepaid contracts (quasi-trust accounts) with the
insureds. However, it wasn't until the early 1970's that the National
Association of Insurance Commissioners (NAIC) proposed a uniform
system of financial ratios to identify the property-liability
companies which required closer financial surveillance and supervision
by the appropriate state insurance department.
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