Likewise fragility is defined as a concave sensitivity to stressors, leading to a negative sensitivity to increase in volatility. The relation between fragility, convexity, and sensitivity to disorder is mathematical, obtained by theorem, not derived from empirical data mining or some historical narrative. It is a priori.
unearned interest. Amount deducted as advance interest from a loaned sum. This amount is recorded as a liability in the books of the lending institution, and is gradually decreased as it is recognized as earned income over the life of the loan. Also called unearned discount.
Severability of Interest. This is a clause that is often found under the Condition section of a policy. The clause provides that insurance provided in the policy will apply separately to each insured on the policy. Looking for a definition that's not in our Insurance Glossary list? Click here to request a new definition.