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19 Cards in this Set
- Front
- Back
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Stock Companies |
Owned by stockholders who provide capital necessary to establish and operate the IC and who share in the profits or losses. |
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Nonparticipating Policies. |
In which policy owners do not share profits or losses. |
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Mutual Companies |
Mutual Companies are owned by the policy owners and issue participating policies. |
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Participating policies |
With __________ policy owners are entitled to dividends, which, in the case of mutual comps ies, are a return of excess premiums and are therefore non taxable. |
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Fraternal Benefit society |
An organization formed to provide insurance benefits for members of an affiliated lodge, religious org., or fraternal org. with a representative form of government. |
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Reciprocal |
A ___________ is insurance resulting from an interchange of reciprocal agreements of indemnity among person's known as subscribers, collectively known as a Reciprocal Insurance Company or Exchange. |
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Lloyd's |
_______ is not an IC. ______ provides support for facilities for underwriters or groups of individuals that accept insurance risk. |
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Risk Retention Groups |
A liability insurance company owned by it's members. Members are exposed to similar liability risks by virtue of being in the same business or industry. |
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Social Insurance Programs |
In areas where private insurance is not available, governments provide insurance programs known as: |
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Certificate of Authority |
Before insurer's may transact business in a specific state, they must apply for and be granted a: |
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Domestic |
An IC that is incorporated in its state. |
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Foreign |
An IC that is incorporated in another state or territorial possession. |
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Alien |
An IC that is incorporated outside of the United States. |
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Independent Agency System |
- 1 independant agent reps several companies - Nonexclusive - Commissions on personal sales - Business renewal with any company |
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Exclusive Agency System |
- 1 agent reps 1 company - Exclusive - Comissions on personal sales - Renewals can only be placed with the appointing insurer. |
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General Agency System |
General agent-entrepreneur reps 1 company Exclusive Compensation and commissions Appoints subagents |
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Managerial System |
agents Salaried Branch Manager supervises agentsSalariedAgents can be insurer's employees or independent contractors agentsSalariedAgents can be insurer's employees or independent contractors agentsSalariedAgents can be insurer's employees or independent contractors Agents can be insurer's employees or independent contractors |
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Direct Response Marketing System |
No agents Company advertises directly to consumers Consumers apply directly to company |
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Reinsurance |
A contract under which one IC indemnifies another IC for part or all of its liabilities. |
