Stratus clouds Stratus clouds are dull, flat, heavy horizontal clouds that lay low in the sky. They are commonly gray but can be white. Stratus clouds often bring a drizzle or they can bring snow. The altitude of stratus clouds indicate how fast a storm is approaching. Low stratus clouds usually mean rain will begin
What Is an Advance Premium Fund? An advance premium fund exists when insurance companies who receive advance premiums must account for the unearned portion of these premiums as a separate liability item on their balance sheets. This item is commonly referred to as the advance premium fund or advance premium account. Once the premium is
DEFINITION of Advance Premium Mutual An advance premium mutual insurance company that assesses premiums in advance at an amount that does not change for a stated period of time. This is different from an assessment insurer which assesses policyholders their premiums based on actual loss and expense experience of the company. BREAKING DOWN Advance Premium
What Is an Advance Rate? An advance rate is the percentage of the value of the collateral that a lender is willing to extend as a loan. The advance rate helps a borrower determine what kind of collateral to bring to the table to secure the desired loan amount and helps minimize a lender’s loss exposure
What Is an Adverse Action? In finance, the term “adverse action” refers to a type of notice given by a lender when a borrower’s credit application has been denied. They are typically delivered within seven to 10 business days following the decision to deny the loan application, usually in writing, although they may be communicated
What Is an Adverse Credit History An adverse credit history is a track record of poor repayment history on one or more loans or credit cards. Adverse credit history will be reflected in a consumer’s credit report. It will lower their credit score and make it more difficult to get a loan or credit card
What is a Adversely Classified Asset An adversely classified asset is a type of loan classification in which the loan or other asset is considered, to some degree, to be impaired. It is an asset that is considered by bank examiners to be of substandard credit quality and whose full repayment of principal and accrued
What Is an Adverse Opinion? An adverse opinion is a professional opinion made by an auditor indicating that a company’s financial statements are misrepresented, misstated, and do not accurately reflect its financial performance and health. Adverse opinions are usually given after an auditor’s report, which can be internal or independent of the company. Key Takeaways
What Is Adverse Possession? The term “adverse possession” refers to a legal principle that grants title to someone who resides on or is in possession of another person’s land. The property’s title is granted to the possessor as long as certain conditions are met including whether they infringe on the rights of the actual owner
What Is Adverse Selection? Adverse selection refers generally to a situation in which sellers have information that buyers do not have, or vice versa, about some aspect of product quality. In other words, it is a case where asymmetric information is exploited. Asymmetric information, also called information failure, happens when one party to a transaction has
