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