Insurance Chapt 1

insurance

A contract that transfers financial risk from an individual or entity to another party, usually an insurance company.

captive insurer

An insurer established and owned by a parent firm for the purpose of insuring the parent firm's loss exposure.

Foreign insurer

An insurer that is authorized in one state, but its charter or principal office is in another State.

Alien Insurer

An insurer which is authorized in any state within the US but it's principal office is located outside the country.

Admitted Insurer

An insurer who has received a certificate of authority from a states department of insurance authorizing them to conduct insurance business in that state

Domestic insurer

Insurer which has its principal or home office in a state where it is authorized.

Broker

Represents themselves and the insured