Types of Insurance Flashcards
A stock insurance company is owned by
stockholders
stockholders receive return of profit by
taxable stock dividens
stockholders direct the company by assigning
directors and officers
A mutual insurance company is owned by
policyholders
policyholders elect who to manage the company
Board of trustees and Directors
profits are returned to policyholders as
nontaxable dividens
what does non-assessable mean
it means they cannot charge members a pro rata share of loss and expense at the end of the policy period
what is demutualization?
is a process whereby a mutual insurer becomes a stock company
Fraternal Organizations are primirly what that engaged in charitable and benevolent activities that provide insurance, primirly what insurance?
social organization that provides primirily life insurance to its members
Membership is typically drawn from members of a given ..in fraternal benefits societies
lodge, order or society
fraternal benefits societies are ususally organized on a what basis
non-profit basis
reciprocal insurance company is a … owned insurer whose main activity is …
is a group owned insurer whose main activity is risk sharing
A reciprocal insurer is unincorporated and is an aggregation of what (3 types) and are usually do what on one another?
individuals, firms, and business corporations that exchange insurance on one another.
A Riciprocal Insurance Company , each member is known as a
subscri
reciprocal insurance companies are run through a
attorney in fact
what can be made in a reciprocal insurance if th premiums collected are unsufficient to pay losses?
an assessment of additional premium can be made
Risk Retention Groups are what type of insurer?
group-owned insurer
they are an insurance company licensed in at least one state that is owned by their policyholders, who are also their shareholders? Give examples
Risk Retention Groups, theme parks, go-carts tracks, water slides, etc
What is ERISA
employer retirement income security act
the three domiciles of insurers are __ __ and alien
domestic and foreign
an authorized insurer is also known as a(n)
admitted insurer
A(n) ___ insurer is one which is not allowed to conduct business in the state of CA
non-admitted insurer
who may be an insurer?
any person capable of making a contract such as; person, association, organization, corporation,
what are the potential consequences to consumers, of being issued a policy by a non- admitted insurer?
the insurer is not subject to the financial solvency regulation and enforcement that applys to the california licensed insurers and the insurer does not participate in insurance guaranty funds created by th California law, therefore the funds will not pay the insures claim
what is direct mail?
a marketing system that does not use an agent, usually advertises to the public through mail, internet, newspaper, magazines, ads.
