Keywords Flashcards

1
Q

Acturial Department

A

Calculates policy rates, reserves and dividends

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2
Q

Alien insurer

A

An insurer whose principal office and domiciled location is outside the country

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3
Q

Admitted insurer

A

An admitted insurer or authorized insurer is an insurer who has received a certificate of authority from a states department of insurance authorizing them to conduct insurance business in that state

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4
Q

Broker

A

Represents themselves and the insured

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5
Q

Captive insurer

A

An issuer established and owned by a parent firm for the purpose of insuring the parent firms loss exposure

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6
Q

Certificate of Authority

A

A license issued to an insurer by a department of insurance (or equivalent state agency), which authorizes the company to conduct insurance business in that particular state

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7
Q

Claims department

A

Is responsible for processing, investigating, and paying claims

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8
Q

Divisible Surplus

A

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

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9
Q

Domestic Insurer

A

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

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10
Q

Foreign Insurer

A

An insurer with its principal office or domicile location in a state different from the state it is transacting insurance business

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11
Q

Fraternal Benefit society

A

Are nonprofit benevolent organizations that provide insurance to its members

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12
Q

Industrial insurer

A

Make up a specialized branch of the industry, primarily providing policies with small face amounts with weekly premiums. Other names for industrial insurance include home, service, or debit insurers.

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13
Q

Insurance

A

The transfer of risk through the pooling or accumulation of funds

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14
Q

Insured

A

the customer receiving insurance protection under an insurance policy

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15
Q

Insurer

A

The insurance company

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16
Q

Lloyds of London

A

Is NOT an insurer, but a group of individuals and companies that underwrite unusual insurance

17
Q

Multi-line insurer

A

An insurance company or independent agent that provides a one-stop-shop for businesses or individuals seeking coverage for all their insurance needs. For example, many large insurers offer individual policies for automobile, homeowner, long-term care, life and health insurance needs.

18
Q

Mutual insurance Company

A

Are insurance companies characterized by having no capital stock, being owned by its policy owners, and usually issue participating insurance

19
Q

Non-admitted insurer

A

A non-admitted or unauthorized insurer is an insurer who has not received a certificate of authority from the states Department of insurance authorizing them to conduct insurance business in that state

20
Q

Nonparticipating Policy

A

A non-participating insurance policy, typically issued by stock companies, do not allow policy owners to participate in dividends or electing the board of directors

21
Q

Participating Plan

A

An insurance policy under which the policyowners share in the company’s earnings to receipt of dividends, and also elect the company’s Board of Directors

22
Q

Private (Commercial) Insurer

A

Private or commercial insurance companies are companies owned by private citizens or groups that offer one or more insurance lines. Commercial insurers are NOT government owned.

23
Q

Reciprocal insurer

A

An unincorporated organization, in which all members insure one another

24
Q

Reinsurance

A

The acceptance by one or more insurers, called reinsurers of a portion of the risk underwritten by another insurer, who has contracted for the entire coverage

25
Q

Reinsurer

A

A company that provides financial protection to insurance companies. Reinsurers handle risk that are too large for insurance companies to handle on their own and make it possible for insurers to obtain more business then they would otherwise be able to.

26
Q

Risk Retention Group

A

a group-owned liability insurer which assumes and spread product liability and other forms of commercial liability risks among its members

27
Q

Self-Insurers

A

Establishes a self funded plan to cover potential losses instead of transferring the rest to an insurance company

28
Q

Stock Insurance Company

A

A stock company is an insurance company owned and controlled by a group of stockholders (or shareholders) whose investment in the company provides the safety margin necessary in the issuance of guaranteed, fixed premium, nonparticipating policies

29
Q

Surplus Lines Insurance

A

Is nontraditional Insurance only available from a surplus lines insurer. They offer coverage for substandard or unusual risks not available through private or commercial carriers

30
Q

Underwriting Department

A

the department within an insurance company responsible for reviewing applications, approving or declining applications, and assigning risk classifications