1B Flashcards
Stock Insurance Co
owned by stockholders. stock = equity. owners have right to vote, share in dividends
Mutual Insurance Co
no capital stock. governing body elected by policyholders.
Fraternal Benefit Society
corp. w/o capital stock. exists solely for the benefit of its members. not for profit insurers. each voting member has 1 vote. no votes by proxy.
Reciprocal Insurer
members must have commond bond. coverage is evidenced by interexchanging agreements of indemnification
Risk Retention Group
corp. formed to assume liability exposures (ie. doctors have formed risk retention gropus to maintain malpractice insurance)
Purchasing Group
formed for purpose of purchasing liability insurance on a group basis
Residual market
insurance provided by or subsidized by a state or fed gov. (ie. worker’s comp, SAIF, FAIR plan)
Lloyds
Is an association of individuals who share in insurance contracts (not an insurance co.)
AM Best
monitors and reports on the financial status of insurance co
Retention Limit
maximum an insurer will accept on a standalone basis. Anything above is ceded or subcontracted out (insured by reinsurer)
Limit of Risk
generally can’t stand alone on one subject of insurance that > 10% of it’s surplus to policyholders
Prior Approval
policy forms/rates submitted and approved PRIOR
File & Use
insurers file policy forms/rates and are then subject to review by the state
Use & File
insurer file forms/rates w/in a time fram of initial use and subject to review
Open Competition
allow insurers to compete openly with forms and rates
