Defined terms for the annuity market and lifetime income landscape.
An asset-backed claim is a lifetime income claim in which the income is paid by an insurer from the assets held in its general account, with the participant's right to income depending on the insurer's continued solvency and the performance of those assets.
Asset-liability management is the discipline by which an insurance carrier structures the assets in its general account to match the cash-flow timing, duration, and behavior of the long-duration income obligations it owes to annuity contract owners.
Assignment of an annuity contract is the transfer of some or all of the contract owner's rights to another party, either as a collateral pledge or as an outright transfer of ownership, with tax and regulatory consequences that vary by contract type and by the terms of the assignment.
Authorized control level is the regulatory intervention threshold under the US risk-based capital framework at which the state insurance commissioner is authorized to take control of an insurance carrier, triggered when the carrier's risk-based capital ratio falls below one hundred percent.
