Chapter 1 - Basic Principles Flashcards
Actuarial Department
calculates policy rates, reserves, and dividends.
Alien Insurer
An insurer whose principal office is outside the country
Admitted/Authorized Insurer
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
Insurance producer selling products from more than one insurance company. Represents themselves and the insured
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
A license issued to an insurer by a department of insurance (or equivalent state agency). Authorizes the company to conduct insurance business in that state
Claims department
Responsible for processing, investigating, and paying claims
Divisible Surplus
The amount of earnings paid to policy owners as dividends after the the insurance company sets aside finds required to cover expenses, reserves, 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
Non-profit benevolent organizations that provide insurance to its members
Industrial Insurer
A specialized branch of the industry, primarily providing policies with small face amounts and weekly premiums. AKA home service or debit insurers.
Insurance
The transfer of risk through the pooling or accumulation of funds
Insured
The customer receiving insurance protection
Insurer
The insurance company
