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27 Cards in this Set
- Front
- Back
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Function of Underwriting
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Evaluate applications, select rating factors, policy terms and conditions.
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Private Insurers
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3 Types –Stock, Mutual, Reciprocal
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Self-Funding
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Retaining all or part of the risk
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Reinsurance
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Companies share the risk and premiums
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Marketing Distribution
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4 Systems – Direct Writing, Direct Mail, Exclusive Agents, Independent Agencies
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Investigative Agencies
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5 areas – Personal Interviews, MIB, DMV, Financial Reports, Physician Statements
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Agent
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Works on behalf of a company for an insured.
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Broker
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Works on behalf of an insured for a company.
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MGA Managing general Agent
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Works with agents and is appointed with many companies.
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Solicitor
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Works for an employer, selling insurance under an agent.
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Fire & Casualty Licensee
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Licensed to transact Hazard insurance and Liability policies including Health and Disability insurance
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Personal Lines Licensee
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Cannot transact Health Disability or Commercial.
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Adjuster
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Assists in settling claims either for a company or for an insured
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Non-Admitted/Admitted
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Not authorized to transact business in CA, except through a
Surplus. Lines broker. |
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Alien/Foreign/Domestic
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Organized under laws of another country/another state/CA.
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Surplus Lines and Special Surplus Lines
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Only transact for non-admitted/brokers who transact railroad, aircraft, shipowners coverage, etc.
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Inactive License
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No Notice of Appointment on file, but all fees and CE units are up to date
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Fiduciary
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Handles affairs and funds of others.
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CE Unit requirements
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Continuing Education is: First 4 yrs=25 units each year. 3rd renewal
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CIC & CCR’s
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California Insurance Code & California Code of Regulations
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Departments in an Insurance Company
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4 areas – Marketing, Sales, Underwriting, Actuarial
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Commissioner
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Elected by the citizens to administer, interpret and enforce the code.
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CSGA
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California State Guaranty Association
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Rating Laws
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4 types – Prior Approval, File & Use, Use & File, Open Competition
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ISO
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Insurance Service Office
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Subrogation
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Insured gives up the right to sue the 3rd party and the company does it for them
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Arbitration
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Mediator that helps settle disputed claims.
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