Chapter 8 Flashcards
Key Term: A broker who acts as an intermediary between a retail agent or broker and an insurer, often possessing specialized expertise in a particular line of coverage.
Wholesale Broker
Key Term: An agreement that allows one party to protect another party against any future losses or claims that may result from a particular activity. Also known as an indemnity agreement
Hold-Harmless Agreement
Key Term: An insurance company that provides insurance to and is controlled by its owners
Captive Insurance Company
Key Term: An insurance company that insures only the risks of the owner and the owner’s subsidiary operations
Single-Owned (Single-Parent) Captive
Key Term: An insurance company that insures the risks of the multiple non-related organizations that own it
Group (Multi-Parent) Captive
Key Term: An insurance company owned or sponsored by a group of organizations belonging to a common industry or service that insures the risks of the group
Association Captive
Key Term: An insurance company owned by insurance agencies, brokerage, or insurers and formed to insure the risks of its owners clients
Agency Captive
Key Term: An insurance company established by organizations unrelated to the companies that use the captive and made available for a fee.
Rent-A-Captive
Key Term: A means of insurance whereby each subscriber appoints a central underwriter as attorney-in-fact to share insurance costs with other insureds in the same group
Reciprocal Insurance Exchange
Key Term: To cede a part of a risk to another insurer or reinsurer.
Retrocede (Retrocession)
