Chapter 1 Flashcards
Actuarial department
calculates policy rates, reserves, and dividends
Alien Insurer
in the United States is an insurer whose principal office and domiciled location is outside the country
Admitted Insurer
insurer who has received a certificate of authority from a state’s department of insurance authorizing them to conduct insurance business in that state
Broker
represents themselves and the insured (i.e., the client or customer)
Captive Insurer
an 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 policyowners as dividends after the insurance company sets aside funds required to cover reserves, operating expenses, and general business purposes
Domestic Insurer
an insurer with its principal or home office in a state where it is authorized
Foreign Insurer
an 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 for industrial insurers include home service or debit insurers
Insurance
transfer of risk through the pooling or accumulation of funds
Insured
is the customer receiving insurance protection under an insurance policy
Insurer
Insurance company