Types of Insurers Flashcards
Types of insurance providers and Government entities
What’s another name for Government insurance?
Social insurance
Government insurance
program where risks are transferred to a government agency
Private insurers
sell insurance based on customer preferences. usually exist for profit or to benefit a group
Mutual Insurance companies
-owned by policyholders
-policyholders are like shareholders elect their board
-“participating insurers” their policyholders participate in dividends
Stock insurance companies
-always for profit
-“non participating” insurers meaning policyholders don’t get dividends
-usually publicly traded
-stockholders invest and participate in profits and losses
re-insurer
insurer that provides insurance for other insurers
Reciprocal insurer
a group of organizations or people that insure each-other
-non profit
-operated by attorney-in-fact
-cost of claims shared by whole group
-members pay into individual accounts
Fraternal Benefit Societies
-nonprofit
-mutual aid organization
-engage in charitable activities
-provides types of insurance to members
-typically consist of people w similar religion, ethnicities, or occupations
Self insurer
-set money aside for potential risks instead of paying premiums
-greater control and transparency
Captive insurer
-self insured
-provide insurance for parent company
-parent company gets all proftis
-retain risks
Risk renting group
-owned by members who share risks and profits
-member create their own liability coverage
-provide all types of liability coverage beside worker comp
-subject to some state laws but not all insurance regulations
-members must have similar business endeavors
-dont have to be licensed in all states
What are the three insurance location classifications?
doesmitc, foreign, alien
Domestic insurer
Located in a particular state and abides to that states laws
Foreign insurer
Abides to a state or us laws but located in a different state
Alien insurer
Abides another countries laws altogether
