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10 Cards in this Set
- Front
- Back
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What are the two main Insurance Classifications? |
There are two main classification Private & Government Insurers |
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Describe a Private Insurer? |
Private insurers are companies that may offer many lines of insurance across multiple market segments like life insurance, health insurance, property and casualty. |
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Multi-Line Insurers |
Companies that write more than one line of insurance are called multi-line insurers. |
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Describe Stock Insurers |
A Stock Insurance Company is a private organization that is incorporated under state laws for the purpose of making a profit for its shareholders. Stockholders may not be policyholders. When declared dividends are taxable to stockholders. Generally run by a Director and Officers. |
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What is a Non participating Company |
Generally referred to a as company that does not allow Policyholders to participate in dividends resulting from having stock ownership. |
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Describe a Mutual Insurer? |
Organized and incorporated under state laws, but have NO stockholders. The policyholders are the owners, anyone purchasing a policy from a mutual insurer is both a customer and owner. The policyholders receive dividends when applicaable. |
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Policy Dividend |
Esentially represent a refund of the portions of the premiums left after all claims and business expenses are taken care of. |
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Participating Companies |
Companies where policy holder particippate in dividends |
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What is Mutualization? |
The process of a Stock Company insurer, being converted into a mutual company. |
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What is Demutualization? |
When a mutual insurer transitions to a stock company inurer. |
