Property and Casualty- Examfx
If an insurer meets the state's financial requirements and is approved to transact business in the state, it is considered what type of insurer?
Authorized
What is the closest term to an authorized insurer?
Authorized or Admitted
Domestic, Foreign, and Alien Insurers
Domestic: Licensed in state Foreign: Formed under the laws of another state. Alien: Formed under the laws of another country
Speculative Risk
Involves the chance of gain or loss and is not insurable
What is the Term for the entity that an agent represents regarding contractual agreements with third parties?
Principal: An agent represents the principal, acting on the entity's behalf in contractual agreements with third parties
Definition of Risk
The chance of a loss occurring
Definition of Reciprocal
When insurance is obtained through a reciprocal insurer, the insureds are sharing the risk of loss with other subscribers of that reciprocal