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14 Cards in this Set
- Front
- Back
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Private Insurers |
The type of insurer that offers insurance to people through the individual market. Private Insurers include: *Stock Insurers (commercial) *Mutual Insurers (commercial) -Noncommercial organizations -Fraternal benefit societies -Lloyd’s Associations -Risk retention groups -Risk purchasing groups -Reciprocal exchanges -Reinsurers -Assessment Insurers -Excess and Surplus lines |
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Government Insurance |
The type of insurance that redistributes incomes to help people afford costs associated with fundamental risks. |
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Stock Insurers/Capital stock insurers |
Incorporated companies owned by their stockholders. Each stockholder owns a portion of the insurer, and is a source of capital for the insurer. Called nonparticipating insurers because policyholders do not participate in the profits of the insurer, and thus do not receive dividends. Dividends paid out from this type of insurance are the profits experienced by the company. |
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Dividend |
A return of overcharged premium, which is not taxable. |
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Mutual Insurers |
Referred to as participating insurers because they issue dividends to their policyholders. Dividends paid out to policyholders are considered a non-taxable return of overcharged premium. Commercial companies owned by their policyholders. There are no stockholders. Distinct from stock insurers in 2 primary ways: -They lack capital stock, and -Profits are distributed among their members—the policyholders. |
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Service Providers or Noncommercial Organizations |
Are not technically “insurers” and do not sell insurance. They are service organizations that provide prepaid health plans for medical, surgical, and hospital expenses. Two common types: -HMOs (Health Maintenance Organizations), and -PPOs (Preferred Provider Organizations) Most familiar is BlueCross BlueShield. Nonprofit entities offering strictly health insurance coverage. |
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HMO |
A service provider that provides the medical care and finances required to fund healthcare services. |
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PPOs |
A service provider that provides discounted medical services to members. It receives a special discounted rate by using certain medical practitioners, hospitals and clinics. It may contract with an insurance company to provide medical services to insureds. |
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Fraternal Benefit Societies/Fraternal Insurers |
Special types of mutual insurers/nonprofit religious, ethnic or charitable organizations that provide insurance exclusively to their members. They are exempt from taxes. |
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Government Insurance/ Social Insurance |
What type of insurance do these fall under? -Social Security -Medicare -Medicaid -Serviceman’s Group Life Insurance -CHAMPUS -TRICARE -National Flood Insurance -War Risk Insurance -Unemployment Insurance -Workers’ Compensation -State Children’s Health Insurance Programs |
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Admitted |
Authorized insurers, or licensed insurers |
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Non admitted |
Unauthorized, non-licensed insurers |
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Mutualization |
When a stock insurer becomes a mutual insurer |
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Demutualization |
When a mutual insurer becomes a stock insurer. |
