Posted on Leave a comment

A mutual insurer that provides coverage to members of religious, charitable and fraternal organizations

A mutual insurer that provides coverage to members of religious, charitable and fraternal organizations

An aggravated form of negligence characterized by the intentional failure to act as a prudent and reasonable person under similar circumstances with reckless disregard for an act’s consequences

Frequency. The number of losses occurring within a given time period. Thus, an insurer is said to have a “frequency problem” if its operating results are adversely affected by a large number of relatively small losses. This contrasts with a “severity problem.”

“Fresh Start. “A special provision of the Tax Reform Act of 1986 allowing for a phase-in of discounting of loss reserves.

Fronting. The issuance of insurance policies by an insurer as an accommodation to another insurer. Usually, the insurer providing the fronting facility cedes all or substantially all the risk, as well as a significant percentage of the premium, to the insurer being accommodated. This device often is used to enable an insurer to underwrite risks in a jurisdiction in which it is not licensed.

The primary noninsurance competition for GICs is the Bank Investment Contract (BIC), which is particularly popular for maturities of less than three years

Full-Risk Capitation. A form of managed Medicaid initiative, under which states pay HMOs (or occasionally health insuring organizations, essentially at-risk intermediaries not integrated with its contracted providers) on a capitated basis to provide a comprehensive set of Medicaid services. Continue reading A mutual insurer that provides coverage to members of religious, charitable and fraternal organizations

Posted on Leave a comment

What is a Merchant Cash Advance (MCA)?

What is a Merchant Cash Advance (MCA)?

Merchant cash advances provide small businesses with an alternative from traditional bank loans. Business owners receive funds as a lump sum upfront from a merchant cash advance provider and repay the advance with a percentage of the business’s sales

Merchant Cash Advance Details

  • Fast access to cash
  • Flexible repayment terms
  • Strong credit not required
  • You choose how to use
  • No collateral required
  • Very, very expensive (70% – 200% APR)
  • Minimum daily payment hurts cash flow
  • Doesn’t help build business credit
  • May lock-in merchant processor
  • Must accept credit cards

A merchant cash advance is not a business loan but should be considered a cash advance based on the volume of your credit card receipts. Continue reading What is a Merchant Cash Advance (MCA)?