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  • Zero coupon bond
  • Zone examination
  • Zone rating
  • Zone system

Zero coupon bond

A certificate evidencing private or public indebtedness that provides no periodic interest payments to the bondholder (such as by annual coupons) during the life of the bond but that, instead, provides for a maturity value that is largely relative to the cost of the bond so as to reflect the absence of annual interest payments.
Zone examination

Refers to an insurance department examination (audit) of an insurance company's operation among several states and involves more than one state's regulators.

Zone rating

In commercial automobile insurance, those risks that have a radius of operation of over 300 miles, and fall into the long-haul category, are rated on the zone they travel in using the city of origin and the city of destination to determine the zone category.

Zone system

A system developed by the NAIC (National Association of Insurance Commissioners) to be used to exam the solvency of insurers. The examination is conducted every three years by teams of examiners. These teams are formed by geographical zones. Results of NAIC exams are usually accepted by states where insurers are licensed, so that each state does not have to conduct its own exams.