Chapter 1 Module 3: Types of Insurers

Foreign insurer

A foreign insurer is any insurer that conducts business in a state or district in which it wasn't incorporated.

Dividends

A return of overcharged premium, which is not taxable.

Alien insurer

An alien insurer is any insurer that conducts business in a country in which it wasn't incorporated.

Domestic insurer

An insurer that conducts business in the state it was incorporated is a domestic insurer.

Stock Insurers

Incorporated companies owned by their stockholders , synonymous with capital stock insurers.

Private Insurers

Insurance which offers coverage to people through the individual market.

Government Insurance

Insurance which provides protection against fundamental risks by *redistributing income* to help people who cannot afford to pay the cost of incurring such losses themselves.

Excess and surplus lines

Insurers that insure risks that traditional insurers will not insure due to the nature or amount of coverage of the risk.

Nonparticipating insurers

Insurers that pay dividends to stockholders, not policyholders.

Commercial Insurers

Insurers who sell insurance to make a profit. (Stock and mutual insurers)