Basic Principles Of Life & Health Insurance & Annuities Flashcards
Calculates policy rates, reserves, and dividends
Actuarial Department
An insurer whose principal office and domiciled location is outside the country
Alien Insurer
(AKA authorized issurer) who has received a certificate of authority from a state’s department of insurance authorizing them to conduct insurance business in that state
Admitted Insurer
Represents themselves and the insured
Broker
An insurer established and owned by a parent firm for the purpose of insuring the parent firm’s loss exposure
Captive Insurer
A license issued to an insurer by a department of insurance, which authorizes that company to conduct insurance business in that particular state
Certificate of Authority
Responsible for processing, investigating, and paying claims
Claims Department
The amount of earnings paid to policyowners as dividends after the insurance company sets aside funds required to cover reserves, operating expenses, and general business purposes
Divisible Surplus
An insurer with its principal office or domicile location in a state different from the state it is transacting insurance business
Foreign Insurer
Nonprofit benevolent organizations that provide insurance to its members
Fraternal Benefit Society
Make up a specialized branch of the industry, primarily provided in policies with small face amounts with weekly premiums. (AKA home service and debit insurance)
Industrial Insurer
The transfer of risk through the pooling or accumulation of funds
Insurance
The customer receiving insurance protection under insurance policy
Insured
The insurance company
Insurer
NOT an insurer, but a group of individuals and companies that underwrite unusual insurance
Lloyd’s of London
An insurance company or independent agent that provides a one-stop-shop for businesses or individuals seeking coverage for all their insurance needs.
Multi-Line Insurer
Insurance companies characterized by having no capital stock, being owned by its policy owners, and usually issue participating insurance
Mutual Insurance Company
(AKA unauthorized Insurer) An insurer who has not received a certificate of authority from a state’s department of insurance authorizing them to conduct insurance business in that state
Non-Admitted Insurer
Typically issued by stock companies and do not allow policyowners to participate in dividends or electing the board of directors
Nonparticipating Policy
An insurance policy under which the policyowners share in the company’s earnings through receipt of dividends and also elect the company’s board of directors
Participating Plan
Companies owned by private citizens or groups that offer one or more insurance lines. NOT government owned
Private (Commercial) Insurer
An unincorporated organization in which all members ensure one another
Reciprocal Insurer
The acceptance by one or more insurers, called reinsurers, of a portion of the risk underwritten by another insurer who has contracted for the entire converage
Reinsurance
A company that provides financial protection to insurance companies. They handle risks that are too large for insurance companies to handle on their own and make it possible for insurers to obtain more business than they would otherwise be able to
Reinsurer
