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Insurance

Pooling

of investors is known as pro rata Pro rata refers to the practice of distributing total losses among a group of investors. This is done in proportion to each investor's stake in the venture. In other words, the bigger the investment, the greater the share of the losses. This concept is commonly used in the world of finance and is essential to understand for any investor. It ensures that everyone bears a fair share of the risks and rewards. So, always keep pro rata in mind when making investment decisions.

Assignor

In the world of finance, an assignor is an individual who holds a policy and decides to transfer the ownership, benefits, and rights of said policy to another person. This t...

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Political risk insurance

. Businesses operating in foreign countries face the risk of political upheaval, including war, revolution, or confiscation of property. This risk can have a significant imp...

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Adverse selection

One concept in finance that is often overlooked is the phenomenon of adverse selection. This refers to the inclination of individuals who face higher risks to seek out more ...

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Consequential losses

In the world of finance, there are various terms that may seem complex at first but are crucial to understand. One such term is "losses other than property damage." This ref...

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