basic principles Flashcards
Actuarial department
the actuarial department calculates policy rates, reserves, and dividends.
Alien insurer
insurer in the United States whose principle office and domiciled location is outside the country.
Admitted insurer
who has received a certificate of authority from a state’s department of insurance authorizing them to conduct insurance business in the state.
Broker
represents themselves and the insured (i.e., the client or customer).
Captive insurer
issuer established and owned by a parent firm for the purpose of insuring the parent firm’s loss exposure
Certificate of authority
license issued to an insurer by a department of insurance (or equivalent state agency), which authorizes that company to conduct insurance business in that particular state
Claims department
is responsible for processing, investigating, and paying claims.
Divisible surplus
the amount of earnings paid to policy owners as dividends after the insurance company sets aside funds required to cover reserves, operating expenses, and general business purposes.
Domestic insurer
insurer with its principal or home office in a state where its authorized
Foreign insurer
insurer with its principal office or domicile location in a state different from the state it is transacting insurance business
Fraternal benefit society
are nonprofit benevolent organizations that provide insurance to its members
Industrial insurer
make up a specialized branch of the industry, primarily providing policies with small face amounts with weekly premiums. Other names include home service or debit insurers
Insurance
the transfer of risk through the pooling or accumulation of funds
Insured
the customer receiving insurance protection under an insurance policy
Insurer
the insurance company