Basics Principales/types Of Insurance

Front 1

Reserve

Back 1

is funds held by the company to help social future claims, are usually set by the State department of Insurance

Front 2

Multi-Line Insurer

Back 2

is an insurance company or independent agent that provides a one stop shop for business or individuals seeking coverage for all their insurance needs

Front 3

Non-participating Plan

Back 3

is Insurance under which the insured is not entitled to share in the divisible surplus of the company

Front 4

Fraternal Benefit Societies

Back 4

are nonprofit gracious organization that provide Insurance to its members, producers are agents who only sell within their society do not receive commission and stay under a specific premium threshold often have less regulations license requirements

Front 5

Stock Companies

Back 5

Are insurance companies owned and controlled by a group of stockholders whose investment in the company provides the safety margin necessary in issuance of guaranteed, fixed premium, nonparticipating policies.

Front 6

Mutual Companies

Back 6

Are insurance companies characterized by having no capital stock; it is owned by its policy owners and usually issues participating insurance.

Front 7

Participating Plan

Back 7

of insurance is a plan under which the policy owner receives shares (commonly called dividends) of the divisible surplus of the company.

Front 8

Reinsurer

Back 8

is a company that provides financial protection to insurance companies.

Front 9

Fair Credit Reporting Act

Back 9

is a federal law requiring an individual to be informed if they are being investigated by an inspection company

Front 10

Buyer's Guide

Back 10

is an informational consumer guide books that explain insurance policies and insurance concepts; in many states, they are required to be given to applicants when certain types of coverages are being considered.

used with life insurance, long-term care insurance, and annuities.

Front 11

Policy Summary

Back 11

is a summary of the terms of an insurance policy, including the conditions, coverage limitations, and premiums.

used with life insurance, long-term care insurance, and annuities.

Front 12

National Association of Insurance Commissioners (NAIC)

Back 12

is an association of all of the state insurance commissioners active in insurance regulatory problems and in forming and recommending model legislation and requirements.

does not directly MAKE laws, as laws are made at the state level. They do work on suggesting standards for states to adopt with the goal of a standardizing the insurance industry throughout the USA

Front 13

State Guaranty Association

Back 13

is established by each state to support insurers and protect consumers in the case of insurer insolvency, guaranty associations are funded by insurersthrough assessments.

All authorized insurers are legally required to participate in the State Guaranty Association for any state they are authorized to do business in regardless of where their corporate office is.

Front 14

State Guaranty Association

Back 14

is established by each state to support insurers and protect consumers in the case of insurer insolvency, guaranty associations are funded by insurersthrough assessments.

All authorized insurers are legally required to participate in the State Guaranty Association for any state they are authorized to do business in regardless of where their corporate office is.

Front 15

Term Life Insurance

Back 15

is protection for a set number of years; expiring without value if the insured survives the stated period, which may be one or more years.

designed to provide temporary protection in case a person dies during a set period of time

Front 16

Whole Life

Back 16

is permanent level insurance protection for a person’s "whole of life," from policy issue to the death of the insured.

Characterized by level premiums, level benefits, and cash values.

Front 17

Group Life

Back 17

is a type of life insurance in which a single contract covers an entire group of people. Most often, the group is an employer-employee group.

the insured typically does NOT own the policy, the group (employer) owns and controls the policy.

Front 18

Consideration

Back 18

is the part of an insurance contract setting forth the amount of initial and renewal premiums and frequency of future payments.

“please CONSIDER me for insurance, here is My initial premium, my completed application, and how much\how often I agree to pay in the future. Please CONSIDER me.”

Front 19

Insuring Agreement

Back 19

(Insuring Clause, Insurance Provision) is the portion of the insurance policy in which the insurer promises to make payment to or on behalf of the insured. It states the scope and limits of coverage. usually contained in a coverage form from which a policy is constructed

We ensure to INSURE you under these conditions for this amount

Front 20

Health Insurance

Back 20

is a general way of describing insurance against loss through sickness or accidental bodily injury.

Also called accident and health, accident and sickness, sickness and accident, or disability insurance

Front 21

Disability (income) Insurance

Back 21

is a form of insurance that insures the beneficiary's earned income against the risk that a disability creates a barrier for a worker to complete the core functions of their work.

Front 22

Medical expense insurance

Back 22

pays benefits for nonsurgical doctors' fees commonly rendered in a hospital; sometimes pays for home and office calls.

Front 23

Entire Contract

Back 23

is an insurance policy provision stating that the application and policy contain all provisions and constitute the entire contract.

Front 24

Notice of Claim

Back 24

is a policy provision that describes the policy owner’s obligation to provide notification of loss to the insurer within a reasonable period of time.

Also requires the insurance company be NOTIFIED of a loss, it does not require that proof of the loss is provide

Front 25

Reinstatement

Back 25

is the act of putting a lapsed policy back in force by producing satisfactory evidence of insurability and paying any past-due premiums required.

Front 26

Property Insurance

Back 26

is an insurance policy that provides financial reimbursement to the owner or renter of a structure and its contents, in the event of damage or theft.

"Protects the things you own and rent."

Front 27

Casualty (Liability) Insurance

Back 27

is insurance which broadly encompasses insurance not directly concerned with life insurance, health insurance, or property insurance.

includes vehicle insurance, liability insurance, theft insurance, workers’ compensation insurance, and elevator insurance.

Also protects you financially in the event of somebody sueing you.

Front 28

Property and Casualty Insurance

Back 28

are often referred to collectively as property and casualty insurance because the things you own have the potential to harm people in ways that could cause them to sue you.

Main kinds include auto insurance, homeowner’s insurance, renter’s insurance and umbrella insurance.

Front 29

Proof of loss

Back 29

is a mandatory health insurance provision stating that the insured must provide a completed claim form to the insurer within days of the date of loss.

"If insured want’s paid, they must PROVE the loss occurred."

Front 30

Deductible

Back 30

is the amount of expense or lossto be paid by the insured before an insurance policy starts paying benefits.

"typically apply to property, casualty, and health insurance."

Front 31

Insurance Declaration page

Back 31

is a piece of paper which provides basic information about an insurance policy. Typically, the first page (face) of an insurance policy is a declaration page.

"specifies the named insured, address, policy period, location of property, policy limits, and other key information."