Types of Insurers Flashcards
1
Q
Stock Insurers
A
- Owned by shareholders, who by shares of stock in the company and share in the profits and losses in the company
2
Q
Mutual Insurers
A
- Owned by policy owners
- Any earnings not to pay expenses are returned to owners as policy dividends
- Issues participating policy which pays dividends when there’s a surplus of funds
- Since returns are excess premiums to the owners, they are non-taxable
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3
Q
Non-Admitted Insurers
A
- Not allowed to licensed in a particular state
4
Q
Admitted Insurers
A
- Allowed to transact business in that state
5
Q
Certificate of Authority (CoA)
A
- License to conduct business
6
Q
Foreign Company
A
- A company doing business in a state where it’s not incorporated
7
Q
Alien Company
A
- A company incorporated under the laws outside of the USA
8
Q
Domestic Company
A
- A company conducting business within a state
