Part Ⅱ金融英语.ppt

After the meeting, the insurance representative will write up an insurance proposal containing a description of the risks to be covered, the amount of protection needed, the form of insurance desired and detailed personal information about the prospective client. If the insurance representative is an independent broker, he or she will send the proposal to several insurance companies in order to obtain the lowest price. If the representative works for an agent of a particular company, he or she will forward the proposal to that company’s underwriting department. The insurance company’s underwriting department will review the details of the proposal. If it considers the risk acceptable, it will provide a quote to the representative—what the premium would be for the coverage desired. The representative will report the good news to the prospective client. If the price quoted is acceptable, the client will make whatever payment is required and a policy of insurance will be issued. Chapter 8 Securities 8.1 The Types of Securities 8.1.1 Debt Securities Debt securities are financial instruments that corporations and governments sell to the public to raise money for expanding their businesses, building new factories, developing mines, constructing airports, highways, railways, buying machinery and equipment. They are loans. The issuer borrows money from investors for a period of time—the term. The money is repaid periodically (monthly, quarterly, semi-annually, annually) or in one lump sum at maturity (the last day of the term). An investor in debt securities earns a return in two ways: 1.?By receiving regular interest payments (monthly, quarterly, semi-annually, annually) and/or; 2.?By getting (either by selling in the market or redeeming at maturity) more money for the debt instrument than was paid for it. Many debt instruments pay interest. The interest rate can be either fixed—does not change during the term of loans or floating—goes up and down as general inter