Definitions Flashcards
An agreement enforceable by law whereby one or more parties binds itself to certain promises or deeds.
Insurance contract
Means solicitation, negotiation, and putting insurance policies into effect. It also includes actions after the policy goes into effect, such as issuing endorsements.
Insurance transaction or “transacting insurance” -
The party that provides insurance coverage, typically through a contract of insurance.
Insurer
Insurance for insurance companies.
Reinsurance
Doing business in Florida and incorporated in Florida.
Domestic
Doing business in Florida, but incorporated in another U.S. state, district or territory (includes Guam, Puerto Rico and U.S. Virgin Islands).
Foreign
Doing business in Florida, but incorporated outside the U.S. For example, a company incorporated in Canada, England, or Hong Kong would be an “alien” insurer.
Alien
Non-profit organizations that provide benefits to its members.
Fraternal
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.
Authorized and Unauthorized Companies
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.
Stock Insurance Company
An organization that is owned by the policyholders. The company may share a portion of its profits as dividends paid to policyholders.
Mutual Insurance Company
A type of mutual insurance company These Groups insure a single type of risk, such as a profession. This allows members to spread risk.
Risk Retention Group
An insurance company that has not been granted a Certificate of Authority by the OIR.
Unlicensed Entity
Approval granted to an insurer by the OIR to do business in a state.
Certificate of Authority
