Multiline Insurance

AAA

DEFINITION of '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 EXPLAINS 'Multiline Insurance'

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
  1. Risk Management

    The process of identification, analysis and either acceptance ...
  2. Management Risk

    The risks associated with ineffective, destructive or underperforming ...
  3. Insurance

    A contract (policy) in which an individual or entity receives ...
  4. Reinsurance

    The practice of insurers transferring portions of risk portfolios ...
  5. Deductible

    1. The amount you have to pay out-of-pocket for expenses before ...
  6. Finite Reinsurance

    A type of reinsurance that transfers over only a finite or limited ...
Related Articles
  1. Investing Basics

    Determining Risk And The Risk Pyramid

    Many investors do not understand how to determine the risk level their individual portfolios should bear.
  2. Options & Futures

    Calculating The Equity Risk Premium

    See the model in action with real data and evaluate whether its assumptions are valid.
  3. Fundamental Analysis

    The Equity-Risk Premium: More Risk For Higher Returns

    Learn how the expected extra return on stocks is measured and why academic studies usually estimate a low premium.
  4. Home & Auto

    What is multiline insurance?

    The term "multiline insurance" can refer to multiline contracts and multiline insurers, so let's take a look at both variations. A multiline contract is a type of insurance policy that bundles ...
  5. Insurance

    Finding The Best Health Insurance You Can Get

    A close look at the pros and cons of Aetna vs. Cigna PPO health insurance helps you decide what's important for you.
  6. Insurance

    Avoid The No-Health-Insurance Penalty By Feb 15

    If you don't have health insurance, act NOW or you could owe penalties on your 2015 taxes, in addition to this year's.
  7. Insurance

    Rating Assurant Prepaid Vs. Delta PPO dental plans

    As more consumers – and dentists – join insurance plans, here’s help in choosing benefits that are right for you.
  8. Professionals

    What are some examples of common fringe benefits?

    Learn how offering fringe benefits can be a strategic recruitment and retention tool for employers and drastically increase total compensation for employees.
  9. Professionals

    What's the average salary of an actuary?

    Get insight into the intriguing career of risk analysis and forecasting. How much do actuaries make, and how is this field expected to fare in the coming years?
  10. Insurance

    How to Use a Waiver of Subrogation

    A waiver of subrogation means that a party to a contract waives the right to allow someone (usually an insurance company) to sue the other party to the contract in case of a loss.

You May Also Like

Hot Definitions
  1. Weather Insurance

    A type of protection against a financial loss that may be incurred because of rain, snow, storms, wind, fog, undesirable ...
  2. Portfolio Turnover

    A measure of how frequently assets within a fund are bought and sold by the managers. Portfolio turnover is calculated by ...
  3. Commercial Paper

    An unsecured, short-term debt instrument issued by a corporation, typically for the financing of accounts receivable, inventories ...
  4. Federal Funds Rate

    The interest rate at which a depository institution lends funds maintained at the Federal Reserve to another depository institution ...
  5. Fixed Asset

    A long-term tangible piece of property that a firm owns and uses in the production of its income and is not expected to be ...
  6. Break-Even Analysis

    An analysis to determine the point at which revenue received equals the costs associated with receiving the revenue. Break-even ...
Trading Center