Basic Principles Flashcards
Mutal insurance company
Participating, policyholders participate in dividends
Divisible surplus
Earnings paid to policuownets as dividends after covering reserves, operating expenses and general business purposes
Pute assessment mutual Co.
Operates on the basis of loss sharing
Risk retention group
Or risk purchasing group only needs lic in One state but can insure members in any state
Fraternal benefit society
Must be nonprofit, have a lodge system, ritualistic, maintain a government consistent of elected representative officers
Lloyd’s of London
Not an insurance company; underwriting syndicate
Ceding company
Transfers risk to the reinsurer
Treaty. Reinsurance
Automatic sharing of risk
Captive insurer
An insurer established and owned by a parent firm for the purpose of insuring the parent firm’s loss exposure
Surplus lines
Non traditional insurance market.
1868 Paul v virginia
Attemp to regulate an ins. Co domiciled in another state
Carrer agencies
Branches of stock and mutual companies acontracted to rep an insurer in a specific area
1944 us v SE underwriters SEUA
Ins.industry is is subj to fed laws which conflict state…now interstate thus federal govt
1945 mccarran Ferguson act
State still regulates because. Pub intrst. Anti trust fed law not reg by state
1958 ftc intervention
Disallowing ftc
