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3 Cards in this Set
- Front
- Back
- 3rd side (hint)
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unauthorized company |
An insurer not permitted to sell insurance within a state. Generally you are prohibited from selling insurance for an unauthorized company. All insurers must be "authorized " to sell insurance in a state which means that they must obtain a certificate of authority from the state. However surplus lines Co. (such as Lloyd of London) and companies who "reinsurer " other companies are exempt from this requirement. Most states allows surplus lines companies to write the risks that authorized company won't take. Surplus lines companies do not participate in the state guaranty fund (association) and are generally unregulated as to rates and policy forms used. |
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Underwriter |
A salaried company employees trained in evaluating risk and determining the rates and coverages. No license is required. 2) a producer especially a life insurance producers is considered to be a "field underwriter" or "front line underwriter". In theory the producer is supposed to do some underwriting before submitting the case to the home office underwriter's on order to assist in making a decision on the bases of known facts. The producer is required to report all facts known to him/her that might affect the risk. |
Remember the producer represents the insurer not the insured. |
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Underwriting |
The process of evaluating a risk for the purpose of issuing insurance coverage. Also known as risk classification. The underwriters job is to select business that fits into the rate structure of the insurer allowing the insurer to not only pay claims and expenses but to make an underwriting profit. |
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