Ch 1 General

Question 1

What are Residual Markets

Answer 1

Considered a private coverage source of last resort for businesses ans individuals rejected by voluntary insurance markets

Question 2

When are Residual Markets used?

Answer 2

When insurance can not be obtained in the ordinary market

Question 3

What is Reinsurance

Answer 3

A device used by insurers to transfer/ share risk

Question 4

The following are all done by what?
Evaluating and rating the financial stability if insurance companies
Assigning rating codes to show financial strengths and weaknesses of each company?

Answer 4

Financial Rating Services

Question 5

Refers to the jurisdiction

Answer 5

Domicle

Question 6

What is a foreign Insurer

Answer 6

Organized under the laws of any state other than this state

Question 7

Organized under the laws of any jurisdiction outside of the united stated

Answer 7

Alien Insurer

Question 8

Admitted

Answer 8

Authorized to transact insurance in a particular state

Question 9

unauthorized to transact business in a particular state

Answer 9

Non Admitted