Unit 1: Intro to Insurance

Question 1

Foreign insurer

Answer 1

In states other than its own

Question 2

Alien insurer

Answer 2

Country other than United States, District of Columbia, or any U.S. Territorial possession.

Question 3

A company who receives a license do to business in a state is considered ____ into a state as a legal insurer and is ____ to do business in that state.

Answer 3

Admitted, authorized

Question 4

A company that is doing business in a country where it is not domiciled is considered a ____ insurer.

Answer 4

Alien

Question 5

A company that is doing business in a state where it is not domiciled is considered a ____ insurer

Answer 5

Foreign

Question 6

Insurers not licensed to transact insurance within a state are considered ____ or ____.

Answer 6

Nonadmitted, unauthorized

Question 7

A company that is doing business in a state in which it is incorporated is considered a ____ insurer.

Answer 7

Domestic

Question 8

Domestic insurers

Answer 8

Within its state

Question 9

What are the 5 methods of dealing with risk?

STARR

Answer 9

Sharing
Transfer
Avoidance
Reduction
Retention

Question 10

All of the following are powers and duties of the Commissioner, Superintendent, or Director of Insurance EXCEPT

A. Issue a certificate of authority
B. Make insurance laws
C. Examine books, records, and documents of an insurer, agent, or broker
D. Approve insurance policy forms sold within a state

Answer 10

B