Multiline Insurance
An insurance instrument used to bundle the risk exposures of multiple insurance obligations into one insurance contract. The risk exposures put together often are related, such as property and casualty risks. Investopedia Says:
Many different varieties of multiline contracts exist, and they cover a wide range of risk exposures. The basis behind multiline contracts is that a firm often is exposed to a portfolio of risk, and instead of creating a portfolio of insurance policies to manage that risk, they should use a single multiline contract to manage the portfolio of risks. One insurance contract is then more efficient and less costly than many contracts. Related Terms:
Deductible
Finite Reinsurance
Insurance
Management Risk
Monoline Insurance Company
National Association of Insurance Commissioners - NAIC
Reinsurance
Risk Management |