Intro Video Flashcards
Actuarial Department
Calculates policy rates, reserves, and dividends
Alien Insurer
An insurer who is principal office is domicile location is outside the country
Admitted Insurer
An insurer, who has received a certificate of authority from the states, Department of insurance, authorizing them to conduct insurance business in that state
Broker
A broker represents them selves in the insured
Captive insurer
Is an ensure established in owned by a parent firm for the purpose of ensuring the parents firms loss exposure
Certificate of authority
Is a license issued to an insurer by the department of insurance which authorizes that company to conduct insurance business in that particular state 
Divisible Surplus
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 
Domestic insurer
Is an insurer with its principal or home office in a state where it is authorized
Foreign insurer
Insurer with its principle office or domicile location in a state different from the state it is transacting insurance business
Fraternal benefit society
Nonprofit, benevolent organizations that provide insurance to its members
Industrial insurer
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
Insurance
The transfer of risk through the pooling or accumulation of funds
Insured
Customer receiving insurance protection under an insurance policy
Insurer
Insurance company
Lloyds of London
Is NOT an insurer but is a group of individuals and companies that underwrite unusual policies
 Multi line insurer
Company or independent agent that provides a one stop shop for businesses are individual seeking coverage for all their insurance minutes
Mutual insurance company
 Characterized by having no capital stock being on by policy owners, and usually issue participating insurance
Nonadmitted insurer
Insurer who has not received a certificate of authorization from the states, Department of insurance, authorizing them to conduct insurance business in that state
Nonparticipating policy
Typically issued by stock companies do not allow policy owners to participate in dividends or electing the board of directors 
Participating plan
 Insurance policy under which the policy owners share in the companies earnings the receipt of dividends and also elect the company Board of Directors
Private (commercial) insurer
Companies owned by private citizens or groups that offer one or more insurance lines. Commercial insurers are not government owned. 
Reciprocal insurer
Is an unincorporated organization in which all members insure one another
Reinsurance
 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 
Reinsurer
Company that provides financial protection to insurance companies Mx handle risks that are too large for insurance companies to handle on their own
Risk retention group
Group owned liability insurer which assumes and spread product liability, and other forms of commercial liability risk among its members 
Self insurers
Self funded plan to cover potential losses instead of transferring the risk to an insurance company
Stock company
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
Surplus line’s insurance
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
Underwriting department
Is responsible for reviewing applications approving or denying and assigning risk classifications
