Central Loss Fund

Dictionary Says

Definition of 'Central Loss Fund'


A fund set aside by some states in order to cover policyholder claims if an insurance company is declared insolvent. A central loss fund is created by state insurance regulators through the collection of assessments on insurance companies operating in the state. Most states have a central loss fund of some type, however the details of their operations differ according to their respective state laws.
Investopedia Says

Investopedia explains 'Central Loss Fund'


A central loss fund is important to protect the interests of policyholders in the event an insurance company is unable to pay claims. The states' respective insurance commissioners are responsible for overseeing insurance companies and ensuring that they maintain adequate collateral to cover expected losses. However, widespread and unanticipated catastrophes may still arise which result in claims exceeded an insurance company's ability to pay.
comments powered by Disqus
Hot Definitions
  1. Chicago Mercantile Exchange - CME

    The world's second-largest exchange for futures and options on futures and the largest in the U.S. Trading involves mostly futures on interest rates, currency, equities, stock indices and agricultural products.
  2. Private Equity

    Equity capital that is not quoted on a public exchange. Private equity consists of investors and funds that make investments directly into private companies or conduct buyouts of public companies that result in a delisting of public equity.
  3. Valuation

    The process of determining the current worth of an asset or company. There are many techniques that can be used to determine value, some are subjective and others are objective.
  4. Valuation

    The process of determining the current worth of an asset or company. There are many techniques that can be used to determine value, some are subjective and others are objective.
  5. Tech Street

    A term used in the financial markets and the press to refer to the technology sector. Companies like Intel, Microsoft, Apple and Dell are all considered to be part of Tech Street.
  6. Tech Street

    A term used in the financial markets and the press to refer to the technology sector. Companies like Intel, Microsoft, Apple and Dell are all considered to be part of Tech Street.
Trading Center