State Insurance Words
Risk Retention Group
A group-owned liability insurer which assumes and spread product liability and other forms of commercial liability risks among its members
Certificate Authority
A license issued to an insurer by a department of insurance (or equivalent state agency), which authorizes that company to conduct insurance business in that particular state.
Alien Insurer
An insurance company that is incorporated outside the United States.
Admitted Insurer
An insurer to which a state insurance department has granted a license to do business within that state.
Surplus Lines Insurance
Nontraditional insurance only available from a surplus lines insurer. They offer coverage for substandard or unusual risks not available through private or commercial carriers.
Private (Commercial) Insurer
Private or commercial insurance companies are companies owned by private citizens or groups that offer one or more insurance lines. Commercial insurers are NOT government-owned.
insurance
The transfer of risk through the pooling or accumulation of funds.
Reciprocal Insurers
Unincorporated organization in which all members insure one another
Reinsurer
a company that provides financial protection to insurance companies. Reinsurers handle risks that are too large for insurance companies to handle on their own and make it possible for insurers to obtain more business than they would otherwise be able to.
Multi-line insurer
an insurance company or independent agent that provides a one-stop shop for businesses or individuals seeking coverage for all their insurance needs. For example, many large insurers offer individual policies for automobile, homeowner, long-term care, life and health insurance needs.
captive insurer
an insurer owned by a parent firm for the purpose of insuring the parent firm's loss exposures
Fraternal Benefit Society
are nonprofit benevolent organizations that provide insurance to its members
Self-Insurers
establishes a self-funded plan to cover potential losses instead of transferring the risk to an insurance company
Mutual Insurance Company
insurance companies characterized by having no capital stock, being owned by its policy owners, and usually issue participating insurance
Insurer
insurance company
Stock Insurance Company
insurance company owned and controlled by a group of stockholders (or shareholders) whose investment in the company provides the safety margin necessary in the issuance of guaranteed, fixed premium, nonparticipating policies
Foreign Insurer
insurer with its principal office or domicile location in a state different from the state it is transacting insurance business
Domestic Insurer
insurer with its principal or home office in a state where it is authorized
Lloyd's of London
is NOT an insurer, but a group of individuals and companies that underwrite unusual insurance
Industrial Insurer
make up a specialized branch of the industry, primarily providing policies with small face amounts with weekly premiums. Other names for industrial insurers include home service or debit insurers.
Broker
represents themselves and the insured
claims department
responsible for processing, investigating, and paying claims
Underwriting Department
responsible for reviewing applications, approving or declining applications, and assigning risk classifications
Reinsurance
the acceptance by one or more insurers of a portion of the risk underwritten by another insurer who has contracted for the entire coverage
divisible surplus
the amount of earnings paid to policyowners as dividends after the insurance company sets aside funds required to cover reserves, operating expenses, and general business purposes
Insured
the customer receiving insurance protection under an insurance policy
