Insurance Types Overview

Which type of insurance company is owned by policyholders who elect a board of directors?

What is a key activity that insurance companies are involved in?

What are the dividends received by shareholders in a Stock Insurer called?

Which of these is NOT considered transacting insurance?

Which type of insurance company structure is characterized by underwriters forming syndicates?

Stock Insurers

Owned by shareholders.
Shareholders elect a board of directors.
Shareholders receive taxable dividends, but not guaranteed.
Dividends represent a return on profit.

Mutual Insurers

Owned by policyholders.
Policyholders elect a board of directors.
Policyholders receive non-taxable dividends, as a refund of unused premium.
Dividends not guaranteed.

Lloyds of Texas

Consists of at least 10 underwriters (individuals, partnerships, or associations).
Underwriters have an attorney-in-fact and must be admitted and have a certificate of authority.
Underwriters form syndicates, each liable for its assumed risks.

Joint Underwriting Associations (JUAs)

A group of insurers coming together.
Offer coverage for difficult-to-obtain risks/exposures.
Example: Texas Medical Liability Insurance Underwriting Association (in Texas).

Key Insurance Activities

Collection of premiums/fees
Policy issuance
Processing applications

Insurance Exclusions

Making phone calls
Appointment setting
Claim payments (not considered transacting insurance)

This quiz explores the different types of insurance organizations, including stock insurers, mutual insurers, and Lloyds of Texas. It also covers the essential activities involved in the insurance process. Test your knowledge on how these entities operate and their unique characteristics.