Insurance Float

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Insurance Float

When an insurance company collects premiums to insure future liabilities it is able to invest these funds until liabilities are due. This is termed "insurance float".

See this Motley Fool article for an accessible look at insurance float.

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Please see [url=http://www.bogleheads.org/wiki/Insurance_Float]Insurance Float[/url] on the [url=http://www.bogleheads.org/wiki/Main_Page]Bogleheads Wiki[/url].
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