Insurance Definitions
What must an insurer have to be admitted?
Admitted, or authorized, insurers must have a certificate of authority to transact insurance in a particular state. The correct answer is: Certificate of authority
A foreign insurer is:
An insurer's domicile of incorporation is the state or district in which it became an incorporated company. A foreign insurer is any insurer that conducts business in a state or district in which it wasn't incorporated. Be sure you are not tempted to confuse foreign and alien insurers. The correct answer is: An insurance company conducting business in a state in which it wasn't incorporated
LMO Insurer is incorporated in New Hampshire, conducts business in all of the eastern seaboard states and in Germany. How is LMO Insurer classified in New York?
An insurer's domicile of incorporation is the state or district in which it became an incorporated company. A foreign insurer is any insurer that conducts business in a state or district in which it wasn't incorporated. LMO Insurer is incorporated in New Hampshire, so it is a foreign insurer in New York. The correct answer is: Foreign
An alien insurer is:
An insurer's domicile of incorporation is the state or district in which it became an incorporated company. An alien insurer is any insurer that conducts business in a country in which it wasn't incorporated. The correct answer is: An insurance company conducting business in a foreign country
A domestic insurer is:
An insurer's domicile of incorporation is the state or district in which it became an incorporated company. An insurer that conducts business in the state it was incorporated is a domestic insurer. The correct answer is: An insurance company conducting business in the state in which it is incorporated
LMO Insurer is incorporated in New Hampshire, conducts business in all of the eastern seaboard states and in Germany. How is LMO Insurer classified in New Hampshire?
An insurer's domicile of incorporation is the state or district in which it became an incorporated company. LMO Insurer is incorporated in New Hampshire, so it is domestic in the state of New Hampshire. The correct answer is: Domestic
Mutual insurers are also called:
Mutual insurers are also called Participating, because they pay dividends to policy owners. The correct answer is: Participating
Mutual insurers pay dividends to:
Mutual insurers pay dividends to policy owners. The correct answer is: Policy owners
Stock insurers are also called:
Stock insurers are also called Nonparticipating, because they pay dividends to shareholders not policy owners. The correct answer is: Nonparticipating
Stock insurers pay dividends to:
Stock insurers pay dividends to shareholders. The correct answer is: Shareholders
LMO Insurer is incorporated in New Hampshire, conducts business in all of the eastern seaboard states and in Germany. How is LMO Insurer classified in Germany?
An insurer's domicile of incorporation is the state or district in which it became an incorporated company. LMO Insurer is incorporated in the state of New Hampshire, so it is an alien insurer in Germany. The correct answer is: Alien