Module 1-C-Types of Insurers Flashcards
Fraternal Benefits Society
Non-profit, mutual aid organizations that engage primarily in charitable or benevolent
activities.
Government Insurance
An insurance program where risks are transferred to a government agency. Also known
as social insurance. Government insurance usually exists in situations where the
exposure to loss is too high for private insurers to reliably insure risks.
Mutual Insurance Company
An insurance company that is owned by its policyholders who participate in dividends.
These companies have no shareholders and are not traded publicly.
National Flood Insurance Program
A program that provides insurance for communities that suffer flood damage and are
willing to participate in the FEMA’s floodplain management system.
Non-Commercial
Non-Commercial insurers are not-for-profit insurance companies that return profits to
policyholders by reducing premiums or expanding benefits.
Private Insurance
Private insurance is the term for any insurance other than social insurance.
Reciprocal Insurer
An unincorporated organization of subscribers that operates through an attorney-in-fact
to provide insurance benefits for its members.
Re-insurers
Companies which sell insurance to insurers to reduce the insurer’s exposure to loss.
Risk Purchasing Groups
Groups of people with similar insurance needs who form an organization to buy
insurance as a group.
Risk Retention Group (RRG)
A group in which the members insure each other, using their own capital to write
insurance policies.
Stock Insurance Company
A Stock Insurance Company is owned by stockholders, as opposed to its own
policyholders (as is the case with Mutual Insurance Companies).
