What Is a Single Premium Policy?

Guarantee bond or other types of debt issuers can pay the principal and interest they promised. By purchasing such insurance, issuers can increase their debt safety rating and lower the interest rates they must pay, thereby attracting investors. Single-type insurance was initially used for local government bonds. Insurers gradually expand the types of debt they can insure. When the issuer of the subprime mortgage fails to pay the debts on time, the insurance company must force the payment of compensation, and many companies suffer heavy losses.

Single insurance

Right!
Chinese name
Single insurance
Attributes
An insurance policy
Risk
single
Types of
Insurance
Guarantee bond or other types of debt issuers can pay the principal and interest they promised. By purchasing such insurance, issuers can increase their debt safety rating and lower the interest rates they must pay, thereby attracting investors. Single-type insurance was initially used for local government bonds. Insurers gradually expand the types of debt they can insure. When the issuer of the subprime mortgage fails to pay the debts on time, the insurance company must force the payment of compensation, and many companies suffer heavy losses.

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