1.1 Classifications of Insurers Flashcards
(19 cards)
What are the main types of legal form of ownership for an insurance company?
1) Proprietary
2) Cooperative
3) Other
What are the types of Proprietary Insurers?
1) Stock Insurers
2) Lloyds of London
3) American Lloyds
4) Insurance Exchanges
What is a Stock Insurer insurance company?
The company is owned by stock holders. Investors purchasing stock supplies the capital the company needs. Stock holder elect the board of directors and appoints the CEO.
What is the Lloyds of London?
Lloyds is a market place similar to a stock exchange. The members are investors hoping to ear a profit. Members are mainly corporations with some individuals.
What is American Lloyds?
Stock exchange similar to Lloyds of London located in Texas.
What is an Insurance Exchange?
An insurance exchange where member belong to a syndicate and delegate day-to-day operations to a syndicate manager.
What are the types of Cooperative Insurers?
1) Mutual Insurers
2) Reciprocal Insurance Exchanges
3) Fraternal Organizations
4) Captive Insurers
5) Risk Retention groups
6) Purchasing groups
What is a proprietary insurer?
Insurer formed for the purpose of earning a profit for its owners
What is a cooperative insurer?
Type of insurer that is owned by its policyholders
What is a mutual insurer?
Insurance company owned by its policy holders. Policy holders have voting rights similar to stock holders.
What is a reciprocal insurance exchange?
Series of private contract in which subscribers, or members agree to insure each other. An Attorney-in-fact runs the exchange.
What is a fraternal organization insurer?
A mutual insurance company that combines a lodge or social function.
What is a captive insurer?
Business organization or affiliates form a subsidiary company to provide insurance to themselves.
What is an insurer pool?
Group of insurers that join together to insure for a long they other wise wouldn’t take on (catastrophic)
What are the terms for place of incorporation?
1) Domestic
2) Foreign
3) Alien
What is operating in its domiciled state?
Doing business in the state is which it’s incorporated
What is an independent agent / brokerage?
Independent contractors that sell insurance for multiple insurance companies
What is a Direct agent?
Direct employee of the insurance company
What is an Exclusive or Captive agent?
Agent that sells only for one insurance company
