Podcast
Questions and Answers
The department that calculates policy rates, reserves, and dividends is called the ______.
The department that calculates policy rates, reserves, and dividends is called the ______.
Actuarial Department
An ______ is an insurer whose principal office is outside the United States.
An ______ is an insurer whose principal office is outside the United States.
Alien Insurer
An insurer that has received a certificate of authority from a state's department of insurance is known as an ______.
An insurer that has received a certificate of authority from a state's department of insurance is known as an ______.
Admitted Insurer
An ______ is a person who investigates claims and arranges for them to be settled or denied.
An ______ is a person who investigates claims and arranges for them to be settled or denied.
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A ______ is established and owned by a parent firm to insure its loss exposure.
A ______ is established and owned by a parent firm to insure its loss exposure.
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The license issued to an insurer by an insurance department authorizing them to conduct business is called a ______.
The license issued to an insurer by an insurance department authorizing them to conduct business is called a ______.
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The department responsible for processing, investigating, and paying claims is known as the ______.
The department responsible for processing, investigating, and paying claims is known as the ______.
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A ______ is a non-profit organization that provides insurance benefits to its members.
A ______ is a non-profit organization that provides insurance benefits to its members.
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The ______ is the customer who receives insurance protection under an insurance policy.
The ______ is the customer who receives insurance protection under an insurance policy.
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Lloyds of London is a group of individuals and companies that underwrite unusual insurance policies, but it is NOT an ______.
Lloyds of London is a group of individuals and companies that underwrite unusual insurance policies, but it is NOT an ______.
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A ______ insurer only sells one line of insurance.
A ______ insurer only sells one line of insurance.
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A ______ insurance company is owned by their policy owners and typically issues participating insurance.
A ______ insurance company is owned by their policy owners and typically issues participating insurance.
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A ______ policy typically does not allow policy owners to participate in dividends.
A ______ policy typically does not allow policy owners to participate in dividends.
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The ______ represents one or more specific insurers but does not recruit or train agents.
The ______ represents one or more specific insurers but does not recruit or train agents.
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A ______ insurer operates under a certificate of authority to conduct business in a particular state.
A ______ insurer operates under a certificate of authority to conduct business in a particular state.
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A ______ adjusts insurance claims on behalf of the consumer.
A ______ adjusts insurance claims on behalf of the consumer.
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A ______ insurer is an unincorporated organization where all members insure one another.
A ______ insurer is an unincorporated organization where all members insure one another.
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The ______ manages the reciprocal insurer.
The ______ manages the reciprocal insurer.
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A ______ provides financial protection to insurance companies.
A ______ provides financial protection to insurance companies.
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A ______ Group is a group-owned liability insurer that spreads commercial liability risks among its members.
A ______ Group is a group-owned liability insurer that spreads commercial liability risks among its members.
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The ______ Department acquires clients through one-on-one meetings with consumers.
The ______ Department acquires clients through one-on-one meetings with consumers.
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A ______ is a company that establishes a self-funded plan to cover potential losses.
A ______ is a company that establishes a self-funded plan to cover potential losses.
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______ are customer service employees who do not require a license.
______ are customer service employees who do not require a license.
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A ______ Insurance Company is owned and controlled by shareholders.
A ______ Insurance Company is owned and controlled by shareholders.
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Study Notes
Key Insurance Definitions
- Actuarial Department: Calculates policy rates, reserves, and dividends.
- Adjuster: Investigates claims and arranges settlements/denials.
- Alien Insurer: Insurer with a principal office and domicile outside the US.
- Admitted Insurer: Has a certificate of authority from a state insurance department. Allows them to conduct business there.
- Agent: Individual or organization authorized to solicit, sell, and bind coverage for specific insurance providers.
- Authorized Insurer: Same as an admitted insurer.
- Broker: Represents the insured but cannot bind coverage.
- Captive Insurer: Insurer established by a parent firm to insure its loss exposure.
- Certificate of Authority: License issued to insurers by the insurance department authorizing them to operate within a particular state.
- Claims Department: Processes, investigates, and pays insurance claims.
- Divisible Surplus: Earnings paid to policyholders as dividends after reserves and operating expenses are set aside.
- Domestic Insurer: Insurer with a principal or home office in the state in which it operates.
- Foreign Insurer: Insurer with a principal office or domicile in a different state from the one where it operates.
- Fraternal Benefit Society: Non-profit organization that provides insurance to its members.
- Independent Insurance Agency: Agency that represents multiple insurance companies.
- Insurance: The transfer of risk through pooling or accumulating funds.
- Insured: The customer receiving insurance protection.
- Insurer: An insurance company.
- Lloyds of London: Group of individuals and companies underwriting unusual policies, not an insurer itself.
- Marketing Division: Responsible for acquiring prospective insurance applicants.
- Monoline Insurer: Sells only one line of insurance.
- Multi-Line Insurer: Provides various insurance types.
- Mutual Insurance Company: Owned by policyholders, no capital stock, and often issues participating policies.
- Non-Admitted (Unauthorized) Insurer: Does not possess the necessary authorization to conduct business within a given state.
- Nonparticipating Policy: Stock company policies, without dividend participation or voting rights for policyholders.
- Participating Policy: Policies paying dividends, allowing policyholders to participate in the company's surplus and vote on the board of directors.
- Personal Producing General Agency (PPGA): Represents one or more insurance companies, but without a recruiting, training, or supervising their own agents.
- Policy Owner: Responsible for premium payments and has ownership rights to the contract..
- Private (Commercial) Insurer: Insurance held or operated by private parties or groups, may act in many lines of insurance.
- Producer: Licensed individual who sells, solicits, or transacts insurance within a given state.
- Proposed Insured: The individual whose life is covered by the insurance policy.
- Public Adjuster: Acts on behalf of consumers in processing insurance claims
- Reciprocal Insurer: Unincorporated organization where members insure each other.
- Reinsurance: One or more insurers taking on a portion of another insurer's risk.
- Reinsurer: Company providing financial protection to other insurers by taking on a portion of their risk.
- Risk Retention Group: Group-owned liability insurer that spreads product liability risks amongst its members; a type of commercial liability insurance.
- Sales Department: Acquires clients through personal sales and applications.
- Self-Insurer: Company that funds its own potential losses rather than using an outside insurer.
- Service Representatives: Customer service employees within an insurance company.
- Solicitors: Individuals who solicit and schedule meetings between consumers and producers.
- Stock Insurance Company: Insurance company owned and controlled by shareholders; associated with guaranteed, fixed premiums/non-participating policies.
- Surplus Lines Insurance: Non-traditional insurance, covering unusual/substandard risks.
- Unauthorized Insurer: Same as non-admitted insurer.
- Underwriting Department: Reviews applications, approves or declines applications, and classifies insurance risks.
Key Insurance Principles
- Indemnity: Reimbursing losses in insurance contracts.
- Valued Contracts: Predetermined payout amounts in insurance policies, regardless of actual loss.
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Description
Test your understanding of key insurance terms and concepts. This quiz covers essential definitions from the insurance field, including terms related to insurers, agents, and claims processing. Perfect for students or professionals looking to refresh their knowledge in insurance terminology.
