YouTube Flashcards
What is a Subscription market
Risks can be placed with many different insurer
Each insurer takes portion of the risk
Why might an insurer not take 100% of the risk
Authority
Balance portfolio
New area of business so prefer to toe in
Geographical restraints
Broker influence
Client influence
Why would a risk be placed in company maker
Location of insured
Culture, local knowledge and relationships
Experienced insurers
Claims service
What are proprietary companies
Owned by shareholders
What are mutual insurance companies
Owned by the policy holders
What are captive insurance companies
Owned by parent company
Create insurance company to insure themselves
Usually situated offshore for tax
What is a Lloyd’s service company
Approved Cover holder that takes authority from syndicate to write on behalf of syndicate
What is self insurance
Company decides to insure all or part of the risk
Why do insurers operate as insurance companies and Lloyds syndicates?
Lloyds branch is recognised
Lloyds have permission in certain countries to operate where insurance companies has been refused
Capacity
Regulation
What is the State regulation in the USA?
Licence needs to be negotiated with individual states
Lloyds is insured for all reinsurance in the USA
What can insurers be regulated in the USA?
Admitted - obligation under regulation
Licensed - rate and form filling
What system and controls are there?
Training
Computer based checking
Lloyds have minimum standards
What is prize indemnity also known as?
Hole in one insurance
What is fidelity insurance?
Employees Stealing money from company
What is errors and omissions also known as
Professional indemnity
