Basic Principles Flashcards
Commercial Insurer
(or private insurance companies) Businesses that sell insurance for profit.
Stock Companies
(One of the two forms of commercial insurance) Non-participating (because the policyholders do not own the company do not receive company dividends due to profit from stocks and stock dividends)
Mutual Companies
(Second form of commercial insurers)
Participating because the policy owners are the policy holders as well therefore receiving dividends and voting in board directors.
Participating and Non participating
Known as a mixed insurer company.
Fraternal Benefit Societies
Non profit religious, ethnic or charitable organizations that provide insurance solely for their members.
Risk Retention Groups
Mutual companies formed by people in the same group or profession.
Service Providers
Provide benefits in return for premium payments. Ex: PPO’s and HMO’s
Reciprocal Insurers
Unincorporated groups of members that provide annuity insurance to other members therefore being both policyholders and policyowners “reciprocal”
Re-insurers
Passing of insurance to another company that takes on the risk of that policy (The ceding company is the company giving he policy away)
Captive Insurer
Fall back to a parent company’s loss
Home Service Insurers
Insurance for home coverage face amounts are typically small ($1,000 to $2,000) and premiums are paid weekly.
Government Insurance
Federal and State government are also insurers.
Social Security (OASDI)
Income benefits for those that are of old (retirement), survivors of those who died young, and disability qualifiers.
Medicare
Care for the elderly
Medicaid
Health insurance for the financially needy
