Porter Ch. 6: Licensing Regulation Flashcards Preview

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Flashcards in Porter Ch. 6: Licensing Regulation Deck (8)
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1

Initial free surplus requirement

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

2

Minimum required basic surplus

Amount of surplus existing insurers must hold to continue writing insurance

3

Line authority differences

Capitalization unique to LOBs
More hazardous lines demand larger capital

4

Domestic Licensing requirements

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

5

Domestic Licensing prerequisites

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

6

Foreign Insurer advantages over start-up

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

7

Foreign insurer licensing prerequisites

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

8

Alien insurer

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