G8: Insurers

Question	Answer
Lloyds of London	An association that acts as a market regulator and furnishes procedural and physical facilities for its members.
Fraternal Insurer	A type of mutual insurer with some type of social organization in existence based on religion, occupation, national or ethic heritage that makes life and health insurance available to its members.
Major Financial Reports that insures must report to DOI	Liabilities, Income, Expenditures, Balance Sheets, New Business, Total Prems.
Types of Permitted Investments by insurers.	General investments, real estate investments, excess funds investments, additional investments.
Investment of Assets by Insurers	Rules are to ensure that insurers invest in a prudent and responsible manner so that policyholders and claimants are protected.
Any Person Capable of making a contract can be an insurer.	Any Person Capable of making a contract can be an insurer.
Admitted Insurer	Entitled to transact insurance in CA by DOI and received Certificate of Authority.
Non-admitted Insurer	NOT entitled to transact insurance in CA
Admitted Insurer can transact any type of insurance for which it is AUTHORIZED by its Articles of Incorporation (Charter) and has received Certificate of Authority from DOI	Admitted Insurer can transact any type of insurance for which it is AUTHORIZED by its Articles of Incorporation (Charter) and has received Certificate of Authority from DOI
Admitted Insurer can transact any type of insurance for which it is AUTHORIZED by its Articles of Incorporation (Charter) and has received Certificate of Authority from DOI	Admitted Insurer can transact any type of insurance for which it is AUTHORIZED by its Articles of Incorporation (Charter) and has received Certificate of Authority from DOI
An insurer transacting Insurance without a Certificate of Authority can be fined up to $100K and/or up to 1 year in prison.	An insurer transacting Insurance without a Certificate of Authority can be fined up to $100K and/or up to 1 year in prison.
Prohibited acts by Agents with Non-Admitted Insurers	Cannot act as an agent, advertise, or help them. Exception: Only Surplus Line Brokers can work with Non-Admitted Insurers.
Domestic Insurer	Incorporated in CA
Foreign Insurer	Incorporated in another State
Alien Insurer	Incorporated Internationally
Demutualization (Conversion)	legal process in which a MUTUAL company becomes a STOCK company
Insurance Companys' Operating Divisions	Marketing/Sales, Underwriting, Claims, Actuarial
Reciprocal Exchange	An UNINCORPORATED association overseen by an attorney-in-fact in which a member (subscriber) is an insured and an insurer. ex: AAA
Actuarial	Actuaries develop rates based on detailed analysis of: mortality or mordibity tables, operating expenses, claims estimate, investment earning statements
Reinsurance	Where insurer spread the risk with another insurer and both agrees to pay for the policy. (Agree to Share the cost)
Reinsurance Benefits	1. Protection from Catastrophic Losses 2. Allows insurer to Accept Larger Risk (higher policies)3. Minimized Capacity Problems

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	Created by Det Ferraris almost 11 years ago