What Is the Chain Ladder Method? The Chain Ladder Method (CLM) is a method for computing the claims reserve requirement in an insurance company’s financial statement. The chain ladder method is used by insurers to forecast the amount of reserves that must be established in order to cover projected future claims by projecting past claims experience
What Is Chain-Weighted CPI? Chain-weighted CPI, or chained CPI, is an alternative measurement for the Consumer Price Index (CPI) that considers changes to consumer spending patterns to provide a more accurate picture of the cost of living based on the goods that consumers actually buy. Key Takeaways Chain-weighted CPI takes real-word purchasing decisions into account
What Is Chain Of Title? The term chain of title refers to the history of ownership of a piece of property. Titles are normally registered for land and real estate, personal property—such as a vehicle—or a business. Titles are normally registered and maintained with a centralized registry or authoritative body. The chain of title traces
What Are On-Chain Transactions? On-chain transactions refer to cryptocurrency transactions that occur on the blockchain and remain dependent on the state of the blockchain for their validity. On-chain transactions are considered valid only when the blockchain has been updated to reflect the transactions on the public ledger. On-chain transactions offer security and transparency since they can’t
What Is a Chameleon Option? A chameleon option has the ability to change its structure should predetermined terms of the contract be met, such as a specified increase or decrease in the price of the underlying asset. A chameleon option gives an investor greater flexibility in that they can trade a chameleon option instead of trading
What Is the Certainty Equivalent? The certainty equivalent is a guaranteed return that someone would accept now, rather than taking a chance on a higher, but uncertain, return in the future. Put another way, the certainty equivalent is the guaranteed amount of cash that a person would consider as having the same amount of desirability
What Is a Certificate of Insurance (COI)? A certificate of insurance (COI) is a document issued by an insurance company or broker. The COI verifies the existence of an insurance policy and summarizes the key aspects and conditions of the policy. For example, a standard COI lists the policyholder’s name, the policy’s effective date, the
What Is Certificated Stock? Certificated stock generally refers to commodity inventory that has been inspected by qualified representatives and determined to be of basis grade for use in futures market trading. Key Takeaways Certificated stock is an inventory of commodities that has been affirmed by qualified inspectors and approved for futures trading.Certificated stock ensures that
What Is the Certificate in Investment Performance Measurement (CIPM)? The Certificate in Investment Performance Measurement (CIPM) is an internationally recognized accreditation offered by the CFA Institute. As its name suggests, the purpose of the CIPM is to train professionals to accurately calculate and communicate investment performance figures. Key Takeaways CIPM is a well-respected professional designation
What Is a Certificate of Deposit (CD)? A certificate of deposit (CD) is a savings product that earns interest on a lump sum for a fixed period of time. CDs differ from savings accounts because the money must remain untouched for the entirety of their term or risk penalty fees or lost interest. CDs usually
