Operating Cash Flow Law and Legal Definition
Operating cash flow means the measure of funds generated from insurance operations, including the change in cash and invested assets recognized to underwriting activities, net investment income and federal income taxes. Operating cash flow excludes stockholder dividends, capital contributions, unrealized capital gains/losses and various noninsurance related transactions with affiliates. The test of operating cash flow measures a company's ability to meet current obligations through the internal generation of funds from insurance operations. Negative balances in the accounts are indications of unprofitable underwriting results or low yielding assets.
Legal Definition list
- Operating Agreement
- Operating A Vessel
- Operating a Vehicle Under Influence (OVI)
- Operate Aircrafts
- Operably Arranged
- Operating Cash Flow
- Operating Characteristic Curve
- Operating Contractor [Energy]
- Operating Costs for Traffic Monitoring, Management, and Control
- Operating Differential Subsidy
- Operating Environment [Aeronautics and Space]
