PRINCIPLES OF THE INSURANCE INDUSTRY Flashcards
What is the Actuarial Department?
They calculate policy rates, reserves and dividends.
What is an Admitted / Authorized Insurer?
An insurer who has received a certificate of authority from a state’s department of insurance, which authorizes them to conduct insurance business in that state.
What is the Advertising Code?
It specifies what is and is not acceptable in regard to the advertising of insurance products.
What is an Agent?
A person who acts for another person or entity (principle) with regard to contractual arrangments with third parties. AKA, they sell insurance on behalf of the insurer.
What is Agent Authority
The authority given by an insurer to a licensee to transact insurance on the insurer’s behalf.
What is an Alien Insurer?
An insurer authorized in any state in the U.S., but their home office (principal) is located outside the country.
What is Apparent Authority?
The appearance of authority based on the words, actions or deeds of the producer/principal.
Who is ACORD?
They are the Association for Cooperative Operations Research and Development and they publish and maintain standard insurance forms for use in the insurance industry.
What is an Insurance Broker?
They represent themselves and the insured, often looking for the best coverage and pricing.
What is a Captive Insurer?
An insurer established and owned by a parent firm for the purpose of insuring the parent firm’s loss exposure.
What is a Career Agent?
