Types Of Insurance Flashcards
Fraternal Benefit Societies
Non-profit, mutual aid organizations that engage primarily in charitable or benevolent activities. They offer their members insurance against death, disease, and disability. Also known as Fraternal Associations.
Government Insurance
An insurance program where risks are transferred to a government agency. Also know 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. NFIP
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 insures 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. Social insurance programs are run by the government instead of by private individuals.
Reciprocal Insurer
An unincorporated organizations of subscribers that operates through an attorney in fact to provide insurance benefits for its members.
Reinsurers
Companies which sell insurance to insurers to reduce exposure to loss.
Risk Purchasing Group
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)
