Chap 1

Front 1

Insurer

Back 1

Carrier/company that manufact and sell coverage as policy or contract

Front 2

Insurance Angency

Back 2

Independent organization that recruit, contact with and support sales agent and producer

Front 3

Insured agent or Producer

Back 3

Individual representing an ins comp when transacting ins

Front 4

NAIC

Back 4

Consist of all state and territorial commisioners. 2)no legal authority 3)promotes uniformitu among states

Front 5

FIO FEDERAL INS OFFICE

Back 5

Establishing by Dodd-Frank reform and ins act. 2. Monitors fair/affors cov for poor, minority etc. Ins produc educate,support,network, lobby for ins company and producer

Front 6

State Legislative branch

Back 6

Writes anz pases atatr insurance laws or statue to protect insuring public

Front 7

State judicial branch

Back 7

Interpret and determine statue to be constitutional

Front 8

State executive branch

Back 8

Enforce Statue put in place

Front 9

Ins Commissioner/director

Back 9

Appt by Governor - has power to issue rules & regulations to enforce Statues

Front 10

Fraternal benefits society

Back 10

Social organization that engage in charitable activity with same members of faith,lodge,order non-profit

Front 11

Risk retention grps (rrg)

Back 11

Grp owned insurers with similar risk i.e. coalminera, carnival workers, licensed in at least one state, owned by policyholders, must have sufficient liquid assets

Front 12

Self insurer

Back 12

Assume financial risk one's self. Usually avail only to large companies above certain max limits

Front 13

Joint reinsurance pool

Back 13

A company that can't get coverage can apply thru pool and state random pull a company that has to cover them

Front 14

Government insurer

Back 14

Created for large coverage -crime,crop,flood

Front 15

Stock ins co

Back 15

Owned by stockholder/shareholder;stockholder elect director/officers taxable dividends,non partcipating policy issued

Front 16

Mutual ins company

Back 16

1.owned by policyholders 2.policyholder vote on board of trustee or director 3. Non-taxable dividend 4.issued participating policy

Front 17

Reciprocal ins company

Back 17

1.grp owned insurers who share risk 2.grp of people not company 3. Each subscriber assumes risk. 4. Addl prem may b req if short. Exchange of ins vis Attorney-in-fact

Front 18

Lloyds of London

Back 18

Facilitate agreement bywn insured and insurer 2. Used for large policies i.e. jlo booty, lebron hand 3. High risk high price. Membera liable for roak they assume

Front 19

Reinsurance co

Back 19

Assume all risk from primary/ceding company

Front 20

Reinsurance co

Back 20

Transfer rosk among ins co.

Front 21

Primary/ceding company

Back 21

Insurer requesting reinsurance

Front 22

Reinsurance co

Back 22

Insurer sharing in risk

Front 23

Treaty of agreement

Back 23

Covers all risk contained in the subject lines of business automatically (already existing relationship of coverage

Front 24

Facultative agreement

Back 24

Allows ceding co. & reins co. He opportunity to negotiate coverage for addl risks

Front 25

Financial rating service

Back 25

Independent financial rating services eval and ratr the financial stability of insurance co. 2. Avail to public

Front 26

Rating service co.

Back 26

Am best, standard & poor's , moodys investment services, weiss ins ratings

Front 27

Producer

Back 27

Responsible for placing business with financially sound insurer

Front 28

Domicile

Back 28

The jurisdiction (state/country) where an insurer is formed or inc.

Front 29

Domestic insurer

Back 29

Insurer organized under the laws of this state, whethet or not its admitted to do business in this statr

Front 30

Foreign insurer

Back 30

Insurer not organized undrr laws of this state but in another statr in us whthrt admitted or not

Front 31

Alien insurer

Back 31

An insurer organized under the laws of any jurisdiction outside ua whether admitted to do business in this state or not

Front 32

Admitted (authorized) insurer

Back 32

Authorized by this stated commisioner of ins to do business in this state. It has rcvd a cert of authority to do business

Front 33

Non-admitted

Back 33

Applied for auth and was declined or pending. Not curr authorized

Front 34

Places theu Non-admitted carriers

Back 34

Surplus & Excess lines

Front 35

Surplus lines broker

Back 35

Find coverage when ins csn not be obtained thru admitted ins. Collect tax & fees to send to state

Front 36

Executives

Back 36

Oversee the operation of the business

Front 37

Acturial department

Back 37

Gather and interpret statistical info used in rate making. An actuary determines probability of loss and sets premium rates

Front 38

Underwriting dept

Back 38

Selects risks (person or property to insure) and rating that determines actual policy prem. Use judgment

Front 39

Marketing/sales dept

Back 39

Responsible for advertising and selling

Front 40

Claims dept

Back 40

Assista the policyholder in the event of loss

Front 41

Exclusive or captive agency syst

Back 41

Agent solely represent one company,insurer retain ownership rights to the business qritten by agent. Insurer may or may not provide office and agency support serv. Agebt is ee or commiss I n independent contractor

Front 42

Direct writing syst

Back 42

Agent ee of insurer, paod salary,plus bonus or commision

Front 43

Independent agency

Back 43

Work with more than one insurer

Front 44

Career agency systm

Back 44

Agents recruited, trained and supervised by either a mang ee or general agent who is contract with insurer

Front 45

Personal producing general agent

Back 45

No recruiting,sell ins for insurer but maintain on office and staff. Multi contracts with differ agents

Front 46

Mass marketing

Back 46

Specific type ins, large grp i.e. AARP, insurer reduce marketing and underwriting expenses

Front 47

Law of agency

Back 47

Relationship btwn two parties agent acts on behalf of insurer (principle)

Front 48

Principle (Insurer)

Back 48

Responsible for acts of agent unless acts excees the authority of contract

Front 49

Producer aka Agent

Back 49

Appt by ins co. To represent it and present policies on its behlf

Front 50

Express Authority (producer)

Back 50

Written in contract

Front 51

Implied authority (agent)

Back 51

Public assumes i.e. making copies/send/fax

Front 52

Apparent authority(producer)

Back 52

Exceeds authority expressed i.e. took premium though policy is lapsed

Front 53

Agent responsibility to Insurer

Back 53

Fiduciary duty to insurer,espec ehen handle prem $,report facts that affect underwriting, solicit negot sell cancel policy with insurer

Front 54

Agent responsibility to insrd

Back 54

Fwrd prem timely, seek applicant ins needs, eval curr ins cov, serve best interest, recomm best protection

Front 55

Broker

Back 55

Licensed indiv who negotiate ls ins contract with insurer on behalf of insrd, represent applicant,license not applicable in all states