An insurer that is licensed by a state insurance department to do business in a policyholder's home state
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
An insurer that collects premiums up front and closely resembles a stock insurer in its operations
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
A special type of insurer that provides life insurance for its members; typically church oriented
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
Organizations formed for the purpose of prepaying subscribers' medical care benefits; Blue Cross typically pays hospital costs and Blue Shield pays for physician services.
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.
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.
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.
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.