121513
Description
Flashcards by Det Ferraris, updated more than 1 year ago
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Created by Det Ferraris
over 11 years ago
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| Question | Answer |
| Lloyds of London | An association that acts as a market regulator and furnishes procedural and physical facilities for its members. |
| Fraternal Insurer | A type of mutual insurer with some type of social organization in existence based on religion, occupation, national or ethic heritage that makes life and health insurance available to its members. |
| Major Financial Reports that insures must report to DOI | Liabilities, Income, Expenditures, Balance Sheets, New Business, Total Prems. |
| Types of Permitted Investments by insurers. | General investments, real estate investments, excess funds investments, additional investments. |
| Investment of Assets by Insurers | Rules are to ensure that insurers invest in a prudent and responsible manner so that policyholders and claimants are protected. |
| Any Person Capable of making a contract can be an insurer. | Any Person Capable of making a contract can be an insurer. |
| Admitted Insurer | Entitled to transact insurance in CA by DOI and received Certificate of Authority. |
| Non-admitted Insurer | NOT entitled to transact insurance in CA |
| Admitted Insurer can transact any type of insurance for which it is AUTHORIZED by its Articles of Incorporation (Charter) and has received Certificate of Authority from DOI | Admitted Insurer can transact any type of insurance for which it is AUTHORIZED by its Articles of Incorporation (Charter) and has received Certificate of Authority from DOI |
| Admitted Insurer can transact any type of insurance for which it is AUTHORIZED by its Articles of Incorporation (Charter) and has received Certificate of Authority from DOI | Admitted Insurer can transact any type of insurance for which it is AUTHORIZED by its Articles of Incorporation (Charter) and has received Certificate of Authority from DOI |
| An insurer transacting Insurance without a Certificate of Authority can be fined up to $100K and/or up to 1 year in prison. | An insurer transacting Insurance without a Certificate of Authority can be fined up to $100K and/or up to 1 year in prison. |
| Prohibited acts by Agents with Non-Admitted Insurers | Cannot act as an agent, advertise, or help them. Exception: Only Surplus Line Brokers can work with Non-Admitted Insurers. |
| Domestic Insurer | Incorporated in CA |
| Foreign Insurer | Incorporated in another State |
| Alien Insurer | Incorporated Internationally |
| Demutualization (Conversion) | legal process in which a MUTUAL company becomes a STOCK company |
| Insurance Companys' Operating Divisions | Marketing/Sales, Underwriting, Claims, Actuarial |
| Reciprocal Exchange | An UNINCORPORATED association overseen by an attorney-in-fact in which a member (subscriber) is an insured and an insurer. ex: AAA |
| Actuarial | Actuaries develop rates based on detailed analysis of: mortality or mordibity tables, operating expenses, claims estimate, investment earning statements |
| Reinsurance | Where insurer spread the risk with another insurer and both agrees to pay for the policy. (Agree to Share the cost) |
| Reinsurance Benefits | 1. Protection from Catastrophic Losses 2. Allows insurer to Accept Larger Risk (higher policies)3. Minimized Capacity Problems |
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