Porter Ch. 6: Licensing Regulation Flashcards Preview

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Flashcards in Porter Ch. 6: Licensing Regulation Deck (8)
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Initial free surplus requirement

Amount of surplus a new stock insurer must provide above minimum capital required


Minimum required basic surplus

Amount of surplus existing insurers must hold to continue writing insurance


Line authority differences

Capitalization unique to LOBs
More hazardous lines demand larger capital


Domestic Licensing requirements

Books and records kept in state
Principal office in state (create jobs, easier regulator access)


Domestic Licensing prerequisites

Organizational examination; Minimum capital met, management team in pace, records in good order, approved forms/rates


Foreign Insurer advantages over start-up

If strong performer, more likely to receive approval; has history within own state


Foreign insurer licensing prerequisites

Charter and bylaws
Annual Statements (2-3 yrs)
Certificates of Compliance
Most recent report of financial examination


Alien insurer

Insurer licensed in US state but incorporated in another country; must select state to act as "port of entry"