Upgrade to remove ads
Terms in this set (28)
Insurers who sell insurance to make a profit.
An insurance company selling more than one line of insurance
Owned by the stockholders who provide the capital necessary to establish and operate the insurance company and who share in any profits or losses.
Owned by the policy owners and issue participating policies.
When a company operates as both a participating and nonparticipating insurer
Strong Assessment Mutual Companies
Classified by the way the charge premium
Pure Assessment Mutual Company
Operates based on loss-sharing by group members. No premium paid in advance
Advance Premium Assessment Mutual
Charges a premium at the beginning of the policy period. If the original premiums exceed the operating expenses & losses, the surplus is returned to the policyholders as dividends
Fraternal Benefit Societies
Special type of mutual companies/nonprofit religious, ethnic, or charitable organizations that provides insurance solely to their members.
Risk Retention Group
A mutual company formed to cover a bunch of people in the same occupation.
offer benefits to subscribers in return for the payment of a premium
are unincorporated groups of individual members that provide insurance for other members through indemnity contracts. Each member acts as both insurer and insured and are managed by Attorney in Fact.
the insurer that accepts part or all of the insurance from the ceding company
The Ceding Company
The company transferring the risk
An insurer established and owned by the parent company to insure the parent company's loss exposure
Home Service Insurer
Sold by home service or debit life insurance companies. Face amounts are small; usually 1,000 to 2,000 and premiums are paid weekly.
Social insurance provides protection against universal risks by redistributing income to help people who cannot afford the cost of incurring such losses themselves.
Social Security (OASDI)
Provides income benefits for the elderly(retirement), survivors of those who died young (young child of a deceased parent), and those qualifying
Health insurance to care for the elderly
Health insurance to aid the financially needy
Serviceman's or Veteran's Group life insurance for active and retired members
Health insurance for members of the military and their family
retain risks and must have a large number of similar risks and enough capital to pay claims. However, they may save money if the loss experience is lower than the expected costs.
Are similar to commercial insurance plans with one key difference: Companies typically draw from their own assets to fund claims when self-funded.
the ways insurance products are marketed and sold to the public
Work for/represent only one insurance company
Work for themselves or for several Insurers non-exclusively
Only work for Insurer out of one central location where all producers under the location are captive agents and employees of the insurer.
OTHER SETS BY THIS CREATOR
Intermediate Accounting 1 Exam