The Insurance Company Flashcards
(27 cards)
What provinces are government insurers?
British Columbia, Manitoba, Saskatchewan, and Quebec
3 groups of insurance companies
Organizations, co-operative organizations, government organizations
A number of individuals subscribe and pay capital to form a legal entity known as a corporation
Stock Company
Subscriber to sock companies
Shareholders
Monetary interest in the assets and hope to realize a reasonable profit on their investment
Stock Company
Premium reserves (3)
Unearned premium
Outstanding loss
Incurred but not reported (IBNR)
The portion of premium which has not been earned
Unearned Premium
Funds set aside to pay for losses which have been incurred (happened) but not yet paid
Outstanding loss reserve
refers to losses which occurred but have not been reported or recorded by the insurer
Incurred but not yet reported (IBNR)
How do insurance companies make money?
They invest the funds
How do stock companies make money
underwriting gains and investents
Insurance market
Lloyd’s
Insurance companies owned by their policyholders
Mutuals
Profits earned are:
Retained by the company
Given back as dividends
Used to reduce premium
Government insurers
British Columbia
Manitoba
Saskatchewan
Quebec
Refers to a class of risk or in other words a subject of insurane
Line
Insuring a number of automobiles for one owner
fleet
A chance of loss
Risk
a request for insurance, it could be oral or written
Application
The damage of a loss particularly fire, arising from what happens to another risk close by
Exposure
The amount an insurer retains for its own account not including reinsurance
Retention
The process whereby an insurer may share its risk with another insurer by paying to this insurer a portion of the premium it receives for the risk
Reinsurance
people who deal with claims settlements
adjusters
Assets less liabilities
Net worth
