Private Insurers Flashcards
An organization with the purpose of making a profit for its shareholders. The company pays dividends to shareholders, not to policyholders. They are also called “non- par- ticipating” or non par because policyholders do not participate in company profits.
Stock Insurance Company
An organization that is owned by the policyholders. The company may share a portion of its profits as dividends paid to policyholders. These companies are also called “participating” or par because policyholders participate in company profits.
Mutual Insurance Company
An organization that is owned by the policyholders. The policyholders themselves insure the risk of the other policyholders. In other words, the contribute to paying any claims.
Reciprocal Insurance Company
These are not insurance companies themselves. They are associations of individuals and companies that collectively insure risks. An example is Underwriters at Lloyd’s, London.
Syndicate
These companies sell insurance to insurance companies.
Reinsurance Company
A type of insurance company. These Groups insure a single type of risk, such as a profession. This allows members to spread risk among a large number of similar businesses or professions. Policyholders may be referred to as “members” of the retention group.
Risk Retention Group
These are membership based, non-profit organizations. They provide insurance for members who have a common religion, nationality, culture or ethnicity.
Fraternal Benefit Society
Also known as Industrial Insurance. They provide small amounts of insur- ance ($1,000 or $2,000) and premiums are usually paid weekly. The policies are basically designed to cover the cost of burial.
Home Service or Debt Insurer
Provides benefits to its “subscribers.” They sell medical and hospital care services, not insurance. HMOs and PPOs are also called.
Service Provider
