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15 Cards in this Set
- Front
- Back
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What are the different types of insurers?
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Government insurer - take the form of a government department or a crown corporation
Private industry - many different types whose differences arise manying in the forms of incorporation, ownership & organization. |
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What are Captive Insurance Companies?
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Large industrial/commercial orgs may form their own insurance companies; done in an attempt to reduce insurance costs.
Usually set up offshore due to tax laws Insured owns the company. |
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Define Fronting
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an arrangement where one insurer gets paid a fee for allowing another insurer to use its name.
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What are Co-operative Organizations?
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purpose was to provide insurance at a reasonable price.
very few exist today. |
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What is a Mutual Company?
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corporation owned by its policyholders
strengths are the community involvement & low operating costs operated on the premium note plan. |
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What are Stock Mutuals?
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the policy holder is not a member.
shareholders are in fact carrying on the business of writing participating policies |
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What are Factory Mutuals
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organized to write fire insurance on manufacturing risks
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What are Reciprocal Insurance Exchanges
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owned by a group of insureds
subscribers agree to share in the payment of each others losses to the extent that they are covered by insurance policies. If premiums are insufficient to cover costs, subscribers have to make up the difference. |
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What are Stock Companies?
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limited liability organizations
capital invested by shareholders main purpose is making profit |
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What are the two main sources of Insurance company revenue?
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Underwriting gain & investment income
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What is an Insurance Pool?
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owned by a group of insurers
insurance companies join together and form pools joint underwriters are appointed and policies are issued by the pool |
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What is OSFI?
What do they do? |
Office of the Superintendent of Financial Institutions.
Responsible for the constant supervision and enforcement of safeguards Regulates and monitors federally chartered and foreign insurers. |
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How are Foreign insurance companies supervised?
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subject to the same provisions as canadian companies
reciprocal treatment must be available from home company assests approved and vested in trust in canada power of attorney is filed release of assets only with approval |
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What is Lloyd's Insurance Market?
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World's leading insurance market
Not an insurance company Individual and corporate members underwrite risks. |
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How is Lloyd's market managed?
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the council of Lloyd's govern all aspects. The central fund exists to protect the interests of policyholders should members be unable to meet their liabilities.
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