Financial Assurance InsuranceInsurance –Structure Pre-Funded Expected, Plus Risk Transfer Premium = Finite PremiumPre-Funded Expected, Plus Risk Transfer Premium = Finite Premium AIG Determines Costs To Secure LiabilityAIG Determines Costs To Secure Liability –PV Costs Usually Less Than Financial Assurance Amount, (Competitive Rates for Going Concern VS Agency Prescribed Formula Rates for Discontinued Operation) –Policy Limit Equals or Exceeds Financial Assurance Amount
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