Pt1 Flashcards
The accounting measurement of an insurer’s future obligations to its policyholders.
Reserves
Company’s ability to make unpredictable payouts to policy owners
Liquidity
What does purchasing Mutual Insurance do for the customer?
Vote for members for board of directors.
*participating companies allow policyholders to receive dividends, but nonparticipating do not
F
- Organized on the basis of ownership by their policyholders.
- policyholders insure risks of other policyholders
Reciprocal insurers
Syndicate of individuals and companies that individually underwrite insurance
Lloyd’s of London
Insure insurers
Reinsurers
An insurer established and owned by a parent firm for the purpose of insuring the parent firm’s loss exposure
Captive insurer
Mutual insurance co. formed to insure ppl in the same business.
Risk Retention Group (RRG)
- noted primarily for their social charitable and benevolent activities
- provide insurance to meet needs of poorer members
- must be formed for reasons other than insurance
Fraternal Benefit Societies
Sold thru a special branch of industry known as home service, have small face amts (1k-2k)
Industrial Insurer
offer benefits to subscribers in return for premium payment
Service Providers
provide healthcare to subscribers
Health Maintenance Organization (HMO)
provide healthcare to employees
Preferred Provider Organization (PPO)
How is insurance sold?
Through licensed producers using marketing methods
