Definitions

Question 1

An agreement enforceable by law whereby one or more parties binds itself to certain promises or deeds.

Answer 1

Insurance contract

Question 2

Means solicitation, negotiation, and putting insurance policies into effect. It also includes actions after the policy goes into effect, such as issuing endorsements.

Answer 2

Insurance transaction or “transacting insurance” -

Question 3

The party that provides insurance coverage, typically through a contract of insurance.

Answer 3

Insurer

Question 4

Insurance for insurance companies.

Answer 4

Reinsurance

Question 5

Doing business in Florida and incorporated in Florida.

Answer 5

Domestic

Question 6

Doing business in Florida, but incorporated in another U.S. state, district or territory (includes Guam, Puerto Rico and U.S. Virgin Islands).

Answer 6

Foreign

Question 7

Doing business in Florida, but incorporated outside the U.S. For example, a company incorporated in Canada, England, or Hong Kong would be an “” insurer.

Answer 7

Alien

Question 8

Non-profit organizations that provide benefits to its members.

Answer 8

Fraternal

Question 9

All insurance companies must be authorized and issued a “Certificate of Authority” before doing business in the state of Florida. A licensed insurer is known as an “admitted” carrier while an unlicensed insurer is known as a “non-admitted” carrier.

Answer 9

Authorized and Unauthorized Companies

Question 10

An organization with the purpose of making a profit for its shareholders. The company pays dividends to shareholders, not to policyholders. They are also called “non- participating” or non par because policyholders do not participate in company profits.

Answer 10

Stock Insurance Company

Question 11

An organization that is owned by the policyholders. The company may share a portion of its profits as dividends paid to policyholders.

Answer 11

Mutual Insurance Company

Question 12

A type of mutual insurance company These Groups insure a single type of risk, such as a profession. This allows members to spread risk.

Answer 12

Risk Retention Group

Question 13

An insurance company that has not been granted a Certificate of Authority by the OIR.

Answer 13

Unlicensed Entity

Question 14

Approval granted to an insurer by the OIR to do business in a state.

Answer 14

Certificate of Authority

Question 15

No benefits are payable during this period.

Answer 15

Probationary period

Question 16

A period of time after the policy effective date when benefits are not payable. It eliminates claims for certain disabilities, injuries or sicknesses and may be from 30 days up to one year.

Answer 16

Elimination period

Question 17

The maximum length of time that the disability will be paid.

Answer 17

Benefit period