Intro Video

Question 1

Actuarial Department

Answer 1

Calculates policy rates, reserves, and dividends

Question 2

Alien Insurer

Answer 2

An insurer who is principal office is domicile location is outside the country

Question 3

Admitted Insurer

Answer 3

An insurer, who has received a certificate of authority from the states, Department of insurance, authorizing them to conduct insurance business in that state

Question 4

Broker

Answer 4

A broker represents them selves in the insured

Question 5

Captive insurer

Answer 5

Is an ensure established in owned by a parent firm for the purpose of ensuring the parents firms loss exposure

Question 6

Certificate of authority

Answer 6

Is a license issued to an insurer by the department of insurance which authorizes that company to conduct insurance business in that particular state 

Question 7

Divisible Surplus

Answer 7

The amount of earnings paid to policy owners as dividends after the insurance company sets aside funds required to cover reserves, operating expenses, and general business purposes 

Question 8

Domestic insurer

Answer 8

Is an insurer with its principal or home office in a state where it is authorized

Question 9

Foreign insurer

Answer 9

Insurer with its principle office or domicile location in a state different from the state it is transacting insurance business

Question 10

Fraternal benefit society

Answer 10

Nonprofit, benevolent organizations that provide insurance to its members

Question 11

Industrial insurer

Answer 11

makes up a specialized branch of the industry primarily providing policies with small face amounts with weekly premium other names for industrial insurers include home service or debit insurers

Question 12

Insurance

Answer 12

The transfer of risk through the pooling or accumulation of funds

Question 13

Insured

Answer 13

Customer receiving insurance protection under an insurance policy

Question 14

Insurer

Answer 14

Insurance company

Question 15

Lloyds of London

Answer 15

Is NOT an insurer but is a group of individuals and companies that underwrite unusual policies

Question 16

 Multi line insurer

Answer 16

Company or independent agent that provides a one stop shop for businesses are individual seeking coverage for all their insurance minutes

Question 17

Mutual insurance company

Answer 17

 Characterized by having no capital stock being on by policy owners, and usually issue participating insurance

Question 18

Nonadmitted insurer

Answer 18

Insurer who has not received a certificate of authorization from the states, Department of insurance, authorizing them to conduct insurance business in that state

Question 19

Nonparticipating policy

Answer 19

Typically issued by stock companies do not allow policy owners to participate in dividends or electing the board of directors 

Question 20

Participating plan

Answer 20

 Insurance policy under which the policy owners share in the companies earnings the receipt of dividends and also elect the company Board of Directors

Question 21

Private (commercial) insurer

Answer 21

Companies owned by private citizens or groups that offer one or more insurance lines. Commercial insurers are not government owned. 

Question 22

Reciprocal insurer

Answer 22

Is an unincorporated organization in which all members insure one another

Question 23

Reinsurance

Answer 23

 Is the acceptance by one or more insurers called reinsures of a portion of the risk under written by another insurer, who has contracted for the entire package 

Question 24

Reinsurer

Answer 24

Company that provides financial protection to insurance companies Mx handle risks that are too large for insurance companies to handle on their own

Question 25

Risk retention group

Answer 25

Group owned liability insurer which assumes and spread product liability, and other forms of commercial liability risk among its members 

Question 26

Self insurers

Answer 26

Self funded plan to cover potential losses instead of transferring the risk to an insurance company

Question 27

Stock company

Answer 27

Insurance company owned and controlled by a group of stockholders or shareholders whose investment in the company provides the safety margin necessary in issuance of guaranteed, fixed premiums, and nonparticipating policies

Question 28

Surplus line’s insurance

Answer 28

Non-traditional insurance only available from a surplus lines insurer.  they offer coverage for substandard or unusual risks not available for a private or commercial carriers

Question 29

Underwriting department

Answer 29

Is responsible for reviewing applications approving or denying and assigning risk classifications