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An annuity with two annuitants, usually spouses. Payments continue until the death of the longest living of the two.


Insurers which join together to provide coverage for a particular type of risk or size of exposure, when there are difficulties in obtaining coverage in the regular market, and which share in the profits and losses associated with the program. JUAs may be set up to provide auto and homeowners insurance and various commercial coverages, such as medical malpractice. (See Assigned risk plans, Residual market )


Corporate bonds with credit ratings of BB or less. They pay a higher yield than investment grade bonds because issuers have a higher perceived risk of default. Such bonds involve market risk that could force investors, including insurers, to sell the bonds when their value is low. Most states place limits on insurers’ investments in these bonds. In general, because property/casualty insurers can be called upon to provide huge sums of money immediately after a disaster, their investments must be liquid. Less than 2 percent are in real estate and a similarly small percentage are in junk bonds.

Glossary terms and definitions provide a brief review of common insurance terms and definitions used in the insurance industry. Some terms and definitions may vary by state or may not be applicable for all insurance and financial products. This glossary is not an insurance contract. Other terms, conditions and exclusions may apply to your individual insurance contracts. These definitions do not alter or modify the terms of any insurance contract. Your personal insurance contracts are the controlling documents. Additionally, this informational resource is provided as a learning tool and does not replace your rights and obligations or the rights and obligations of the insurance company, agent or agency. If you have questions you should consult with your insurance agent, your insurance company and review the policy language of your insurance contract. 

Glossary content provided by Insurance Information Institute