Alphabet Broker


DEFINITION of 'Alphabet Broker'

Slang terminology for a large insurance broker that is sometimes referred to according to the initials in its name. An alphabet broker, for example, would be referred to as "HIT" rather than "Hedged Investment Portfolio."

BREAKING DOWN 'Alphabet Broker'

Alphabet brokers are often known through their acronym name rather than the full name. For example, many more individuals are familar with the name AIG rather than American Insurance Group.

  1. Power Broker

    An individual who, through his or her connections, is able to ...
  2. Additional Insured

    A type of status associated with general liability insurance ...
  3. Premium

    1. The total cost of an option. 2. The difference between the ...
  4. Insurance

    A contract (policy) in which an individual or entity receives ...
  5. Named Perils Insurance Policy

    A home insurance policy that only provides coverage on losses ...
  6. Liability Insurance

    Any type of insurance policy that protects an individual or business ...
Related Articles
  1. Insurance

    Falling Giant: A Case Study Of AIG

    Find out why the U.S. government approved an enormous bailout package for American Investment Group (AIG).
  2. Insurance

    Explaining Indemnity Insurance

    Indemnity insurance is an insurance policy that protects business owners and employees from losses due to failure to deliver expected services.
  3. Insurance

    What is a Force Majeure?

    A force majeure clause frees both parties in a contract from fulfilling their obligations in the event of some catastrophic or unexpected occurrence.
  4. Insurance

    How Car Insurance Companies Value Cars

    Learn the methodology used by car insurance companies to value cars, and understand why the amount they give you may not cover the cost of a similar vehicle.
  5. Retirement

    The Better Way to Save: Life Insurance or IRA?

    Sure, you can tap your permanent life insurance policy to help fund your retirement. But in most cases, an IRA is the better choice. Here's why.
  6. Professionals

    How to Help Clients Navigate Open Enrollment

    With companies trying to pass on more costs to employees, making the right choices during open enrollment is more important than ever.
  7. Personal Finance

    4 Ways Retirees Can Save on Insurance

    Retirement doesn't mean the end of the road, nor does it mean paying full price for insurance. Carriers reward age and less risky behavior with discounts.
  8. Insurance

    Top 7 Car Insurance Companies in California

    Understand what makes a auto insurance company good in the state of California. Learn about the top seven largest auto insurers in California.
  9. Professionals

    Career Advice: Accounting Vs. Actuary

    Read about what life is like as an actuary or as an accountant, how the two careers are different and how to decide which is best for you.
  10. Insurance

    The Smart Way to Shop for Travel Insurance

    Trip-related coverage can afford peace of mind, but be wary of buying more than you need.
  1. What is the difference between a peril and a hazard?

    The two related terms "peril" and "hazard" are often used in reference to the insurance industry. Essentially, a peril is ... Read Full Answer >>
  2. What level of reserve ratios is typical for an insurance company to protect against ...

    In the United States, and most developed nations, regulators impose required statutory capital reserve ratios on insurance ... Read Full Answer >>
  3. What risks do I face when investing in the insurance sector?

    Like all equity investments, insurance companies present investors with market risk. Insurance companies, like banks, also ... Read Full Answer >>
  4. Why do insurance policies have deductibles?

    Insurance policies have deductibles for behavioral and financial reasons. Moral Hazards Deductibles mitigate the behavioral ... Read Full Answer >>
  5. Can I buy insurance to reduce unlimited liability in a partnership?

    Partnership insurance is actually quite common. Most of the time, partners buy insurance to safeguard against the possibility ... Read Full Answer >>
  6. Is it more important to have a low deductible or a low premium?

    The choice between a low deductible or a low premium is a personal one. There is no right or wrong arrangement, but there ... Read Full Answer >>

You May Also Like

Hot Definitions
  1. Gross Profit

    A company's total revenue (equivalent to total sales) minus the cost of goods sold. Gross profit is the profit a company ...
  2. Revenue

    The amount of money that a company actually receives during a specific period, including discounts and deductions for returned ...
  3. Normal Profit

    An economic condition occurring when the difference between a firm’s total revenue and total cost is equal to zero.
  4. Operating Cost

    Expenses associated with the maintenance and administration of a business on a day-to-day basis.
  5. Cost Of Funds

    The interest rate paid by financial institutions for the funds that they deploy in their business. The cost of funds is one ...
  6. Cost Accounting

    A type of accounting process that aims to capture a company's costs of production by assessing the input costs of each step ...
Trading Center
You are using adblocking software

Want access to all of Investopedia? Add us to your “whitelist”
so you'll never miss a feature!