Insurers

Reinsurance Companies

(a primary insurer) enters into an agreement with another insurance company to accept some of its risk.

rating organizations

A.M. Best Company Conning & Company Demotech Fitch Ratings Moody's Standard and Poor's Weiss Ratings

foreign insurer

Any company that does business in a state other than the one in which it is domiciled

Government Insurance

National Flood Insurance, Medicare, Social Security, Crop Insurance, FDIC, workers comp, unemployment

ceding company or cedent

The insurer seeking to transfer some of its risk

admitted insurer

a company that is licensed to do business in the state or country in which the insured exposure is located.

unauthorized insurer

a real or fictitious organization that has not been approved by the department of insurance in the jurisdiction where it wants to sell insurance.

exclusive agency system

agent represents only one company or group of companies.

independent agency system

agents sell insurance on a commission or fee for one or more insurers. The maintain ownership, use and control of policies.

fraternal benefit society

an organization of people who usually share a common ethnic, religious, or vocational affiliation.

reciprocal insurer

an unincorporated group of persons or organizations that exchange risks for the purpose of paying the cost of retained losses and purchasing reinsurance.

Insurers

another name for insurance companies. Two most common types: stock and mutual ins co's.

Self-Insurance Groups

companies that are willing and financially able to retain certain risks and to self-fund for that purpose.

nonadmitted insurer

company that is not licensed to do business in a certain state. insurers typically provide insurance coverages that otherwise would not be available because the exposure is hard to insure or the applicant requires especially high insurance limits.

Private insurance

forms of insurance provided by privately owned insurers

Mutual insurance companies

has no stockholders. The policy owners are the people and organizations who own insurance policies

insurance commissioner

has the authority to conduct hearings; stop insurers, agents, and brokers from engaging in unfair or unethical activity; or suspend an insurer's, agent's, or broker's license to transact business.

insurance brokers

independent contractors who represent the insurance applicant or policyholder. They assist the insurance applicant by finding coverage.

reinsurer

insurer accepting some of the risk being transferred

domestic insurers

insurers doing business in the state in which they are located

risk retention group

insurers that issue policies to their members and cover their members' liability risks. They retain risk.

captive insurance company

is designed to cover the risks of the "parent" organization or organizations that own it. sometimes considered a sophisticated form of self-insurance.

insurance agents

legally represent insurance companies

domicile

location of insurance company's home office

direct marketing

market insurance through employees of the insurer rather than independent contractor

Lloyd's of London

not an insurance company. Rather, it is an association of individuals and companies that provide insurance. it offers a forum for large companies and brokers to find insurers.

stock insurance companies

owned by stockholders who purchase shares of stock as an investment. If profitable, they may pay dividends to their stockholders.

surplus lines broker

places excess and surplus lines insurance coverage with nonadmitted insurers. provide insurance coverages that otherwise would not be available.

excess insurance and surplus lines insurance

property and liability insurance not available from an admitted insurer.

purchasing groups

purchase insurance from an insurer that issues the policies and serves as the risk bearer.