Terms 1 Flashcards
Calculates policy rates, reserves, and dividends
Actuarial Department
An insurer whose principal office and domiciled location is outside the country
Alien Insurer
An insurer who has received a certificate of authority from a states department of insurance authorizing them to conduct business in that state
Admitted/authorized Insurer
Represents themselves and the insured
Broker
An insurer established and owned by a parent firm for the purpose of insuring the parent firms less exposure
Captive Insurer
A license issued to the insurer by a department of insurance, which authorizes that company to conduct insurance business in that particular state
Certificate of Authority
Responsible for processing investigating, and paying claims
Claims Department
The mount of earnings paid to policy owners as dividends after the insurance company set aside funds required to cover reserves, operating expenses, an general business purposes
Divisible surplus
An insurer with its principle or home office in a state where it is authorized
Domestic Insurer
An insurer with it principal office or domicile location in a different state from the state it is transacting business
Foreign Insurer
Nonprofit benevolent organizations that provide insurance to its members
Fraternal Benefit Society
Make up a specialized branch of the industry, primarily providing policies with small face amounts with weekly premiums. Also known as home service or debit insurers
Industrial Insurer
The transfer of risk through the pooling or accumulation of funds
Insurance
The customer receiving insurance protection under an insurance policy
Insured
The insurance company
Insurer
Not an insurer; but a group of individuals and companies that underwrite unusual insurance
Lloyds of London
An insurance company or independent agent that provides a one stop shop for businesses of individuals seeking coverage for all their insurance needs
Multi Line Insurer
Characterized by having no capital stock, being owned by its policy owners, and usually issue participating insurance
Mutual Insurance Company
An insurer who has not received a certificate of authority from a states department of insurance authorizing them to conduct business in that state
Nonadmitted/unauthorized Insurer
Typically issued by stock companies, do not allow policy owners to participate in dividends or electing the board of directors
Nonparticipating Policy
An insurance policy under which the policy owners share in he company’s earnings through receipt or dividends and also elect the company’s board of directors
Participating Plan
Companies owned by private citizens or groups that offer one or more insurance lines. Not government owned.
Private/Commercial Insurer
An unincorporated organization in which all members insure one another
Reciprocal Insurer
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
Reinsurance
