Property Chapter 4: NJ INS. Regulations Flashcards
(27 cards)
Types of Insures: A Domestic Insurer
one formed under the laws of this state
Types of Insures: A Domestic Mutual Fund Insurer
owned by its policy holders, who elect the insurer’s governing body or board of directors
Types of Insures: What does a Domestic Mutual Insurer NOT have?
No Capital Stock
Types of Insures: A Foreign Insurer
one formed under the laws of another state.
Types of Insures: Alien Insurer
one formed under the laws of any other country other than the United States.
Types of Insures: A Stock Insurer
owned by its STOCK holders and issues NONparticipating policies
A Stock Insurer does NOT participate in?
do not participating in company profits in the form of dividends.
Types of Insures: A Mutual Insurer
owned by its POLICY holders and issues PARTICIPATING policies,
What CAN a mutual insurer receive but it not guaranteed?
their policy holders might receive dividends, although dividends may never be guaranteed.
Producers: Producers MAY ACT as (2)?
What is not required?
either brokers or consultants. No separate license is required.
Producers: An insurance Banker
a producer who represents the insured, or a producer who places insurance with an insurer who he does not represent as an agent.
Producers: An insurance consult
a producer who offers advice for a fee to the public or any licensee with respect to the benefits, advantages, or disadvantages of an insurance policy.
A producer does NOT need?
does not need to have a separate consultant’s license in order to charge fees.
Producers: INS Consultants does NOT include (3)
do not include
bank trust officers,
lawyers
CPAs.
Producers: Fees charged by insurance consultants
must be reasonable in view of the services performed.
Persons may NOT (3) unless?
may not sell,
solicit
negotiate insurance
unless they are properly licensed to do so.
Producers: An insurance agent or produce
a person authorized, in writing, by an insurer to act as its agent to solicit, negotiate or sell insurance contracts on its behalf.
Reinsurance and Retrocession: Reinsurance AKA
CEDING INSURER
a contract whereby the originating insurer seeks to transfer all or part of their risk to an assuming insurer in an effort to reduce their risk exposure.
Reinsurance and Retrocession: Retrocession
the practice of one reinsurance company insuring another reinsurance company by accepting business that the other company had agreed to reinsure.
Reinsurance and Retrocession: An authorized insurer MAY NOT ENGAGE in
may not engage in extended reinsurance without the prior approval of the Commissioner.
Certificate of Authority:
granted to an insurer by the Commissioner authorizing or admitting the insurer to do business in this state.
What is considered UNLAWFUL under COA laws?
It is unlawful for an insurer to engage in insurance related conduct without a Certificate of Authority.
COA: unauthorized or non-admitted insurer
An insurer doing business without a Certificate of Authority
COA: What is a VIOLATION of selling insurance on behalf on an unauthorized insurer
a violation of the state Insurance Code.
