Domestic, Foreign and Alien Insurers
Residual Market
Are insurance programes that are underwritten and controlled by the government
managerial System
Branch manager (supervises agents} Salaried Agents can be insurer's employees or independent contractors
Government insurers
are funded with taxes and serve national and state social purposes
A foreign
is an insurance company that is incorporated in another state or territorial
assuming insurer
is the other insurer that the ceding insurer takes responiablity from
Facultative reinsuance
is when a reinsurance purchase on a specific policy
Domestic
insurer is an insurance company that is incorporated in this state
An Alien
is an insurance comlpany that is incorpated outside the U.S
reinsurance treaty
is when a reinsurer is bound to take all risk ceding to it. They are usually negotiated for a period of a year or longer
Reinsurance
isa contranct under which one insurance company (the reinsurer) indemnifies anouther insurance company for part or of its liabilities
Direct Response Marketing System
No agents Company adverises directly to consumers (through mail, internet, television, other mass marketing) Consumers apply directly to the company
Financial Status
The financial strength and Stability of an insurance company are two vitally important factors
Ceding insurer
The orginating compnay that procures insurance on itself form another insurer
General Agency System
general agent-entrepreneur represents 1 company Exclusive Compensation and commissions Appoints subagents
Exclusive/captive
1 agent represents 1 company Exclusive commissions on personal sales Renewal can only be placed with the appointing insurer
Independent/American Agency System
1 independent agent represents serveral companies Nonexlusive Comissions on personal sales Business renewal with any company