Like this study set? Create a free account to save it.

Sign up for an account

Already have a Quizlet account? .

Create an account

domestic insurer

An insurer doing business in the state where it is

foreign insurer

An insurer doing business in a state other than its state
of incorporation.

alien insurer

An insurer incorporated in another country but doing business
in the United States.

admitted insurer

An insurer that is licensed by a state insurance department to do business in a policyholder's home state

nonadmitted insurer

An insurer that is not licensed by a state insurance department to do business in a policyholder's home state

surplus lines insurance

An insurer that provides coverages that would otherwise not be available, such as to high-risk applicants

stock insurance company

An insurance corporation owned by stockholders

mutual insurance company

Not-for-profit insurance company owned by its policyholders

advance-premium mutuals

An insurer that collects premiums up front and closely resembles a stock insurer in its operations

assessment mutuals

Amall mutual insurer that may or may not collect up front premiums, and assesses policyholders at the end of the year for a portion of its losses and expenses


Shifting the legal structure of a mutual insurer to a stock insurer; this is commonly done for raising capital quickly

mutual holding company

A holding company created by a mutual insurer, in which at least 51 percent of its ownership is by stockholders, and then takes over the policies of the original mutual insurer

fraternal insurer

A special type of insurer that provides life insurance for its members; typically church oriented

reciprocal exchange

Unincorporated pool of funds owned by the policyholders and managed by an attorney-in-fact; typically regulated and licensed now in most states as an insurer.

Blue Cross and Blue
Shield plans

Organizations formed for the purpose of prepaying subscribers' medical care benefits; Blue Cross typically pays hospital costs and Blue Shield pays for physician services.

Lloyd's associations

Groups of individual insurers; often formed to provide reinsurance of unusual and difficult risks.


The representative of a principal (insurance company) that produces and manages policies for an insurer.


Temporary evidence of insurance that is superseded when a written policy is issued.


An independent contractor that represents the policyholder.

surplus lines broker

A special broker that places coverages with nonadmitted insurers when no other market is available in a state; typically for unusual or difficult risks.

direct-response marketing

A business model in which the insurer deals directly with the applicant without an agent.

general agency system

An individual entrepreneur granted a franchise by an insurer to hire and manage agents for that company in a designated geographic area.

branch office system

The insurer established branch offices in which a salaried employee hires and manages the agents in a geographic area.

personal producing
general agent (PPGA)

The insurer hires an individual agent, that is usually experienced and successful, to serve as the agent for a geographic area.

independent agency system

The agency is an independent organization that may represent multiple insurers.

exclusive agency system

The agent represents only one company or family of related companies.

Please allow access to your computer’s microphone to use Voice Recording.

Having trouble? Click here for help.

We can’t access your microphone!

Click the icon above to update your browser permissions and try again


Reload the page to try again!


Press Cmd-0 to reset your zoom

Press Ctrl-0 to reset your zoom

It looks like your browser might be zoomed in or out. Your browser needs to be zoomed to a normal size to record audio.

Please upgrade Flash or install Chrome
to use Voice Recording.

For more help, see our troubleshooting page.

Your microphone is muted

For help fixing this issue, see this FAQ.

Star this term

You can study starred terms together

Voice Recording