Xcel Solutions Life and Health Exam
1. Actuarial Depart- calculates policy rates, reserves, and dividends
ment
2. Adjuster person who investigates claims and arranges for them to be settled or denied.
3. Alien Insurer In the US, this is an insurer whose principal office and domicile location is outside
of the country.
4. Admitted Insurer an insurer who has received a certificate of authority from a state's department of
insurance which authorizes them to conduct insurance business in that state.
5. Agent an individual or organization that's authorized to solicit, sell, and transact (bind)
coverage for specific insurance providers under the terms of one or more agent
contracts.
6. Authorized Insur- This is an admitted insurer.
er
7. Broker this is a person who represents himself and the insured (i.e. the client or cus-
tomer). A _____ cannot bid coverage on behalf of an insurance carrier because
the _______ is not appointed as an agent.
8. Captive Insurer This is a ______ that's established and owned by a parent firm for the purpose of
insuring the parent firm's loss exposure.
9. Certificate of Au- this is a license that's issued to an insurer by an insurance department (or equiv-
thority alent state agency) that authorizes that company to conduct insurance business
in that particular state.
10. Claims Depart- responsible for processing, investigating, and playing claims.
ment
11. Divisible Surplus
, Xcel Solutions Life and Health Exam
This is the amount of earnings that are paid to policy owners as dividends after
the insurance company sets aside funds required to cover reserves, operating
expenses, and general business purposes.
12. Domestic Insurer This is an insurer with it's principal or home office in the state in which it's
authorized.
13. Foreign Insurer This is an insurer whose principal office or domicile location is in a state that is
different from the state in which it's transacting insurance business.
14. Fraternal Benefit This is a non-profit benevolent organization that provides insurance to its mem-
Society bers.
15. Independent In- This is an agency that can represent any number of insurance companies through
surance Agency contractual agreements. Unlike a captive agency, they are not limited to one
insurance company.
16. Insurance This is the transfer of risk through the pooling or accumulation of funds.
17. Insured This is the customer who receives insurance protection under an insurance policy.
18. Insurer an insurance company
19. Lloyds of London This is NOT an insurer but a group of individuals and companies that underwrite
unusual insurance policies.
20. Marketing Divi- responsible for acquiring prospective applicants through various advertising me-
sion dia.
21. Monoline Insurer this is an insurance carrier that only sells one line of insurance
22. Multi-line Insurer This is an insurance company or independent agent that sells more than one line
of insurance
23.
, Xcel Solutions Life and Health Exam
Mutual Insur- This is an insurance company that's characterized by having no capital stock, being
ance Company owned by their policy owners, and typically issuing participating insurance
24. Non-Admitted This is an insurer that had not received a certificate of authority from a state's
(Unauthorized) department of insurance which authorizes it to conduct insurance business in that
Insurer state.
25. Nonparticipat- typically issued by stock companies.
ing policy Does not allow owners to participate in dividends or to elect the board of directors.
26. Participating Pol- pays policy dividends to policy owners.
icy By receiving dividends, policy owners share in the company's divisible surplus and
also elect the company's board of directors.
27. Personal Pro- represents one or more specific insurers.
ducing General don't recruit, train, or supervise career agents.
Agency (PPGA)
28. Policy Owner This is a person who's responsible for the payment of premiums and who pos-
sesses all ownership rights of the contract
Typically the one who is insured.
29. Private (Com- owned by private citizens or groups that offer one or more insurance lines.
mercial) Insurer Commercial insurers are NOT government-owned.
30. Producer This is an individual who's licensed by one or more states to sell, solicit or transact
insurance in a given state.
31. Proposed In- This is a person whose life will be covered by an insurance policy.
sured
32. Public Adjuster This person acts on behalf of a consumer who's settling an insurance claim.
33.
1. Actuarial Depart- calculates policy rates, reserves, and dividends
ment
2. Adjuster person who investigates claims and arranges for them to be settled or denied.
3. Alien Insurer In the US, this is an insurer whose principal office and domicile location is outside
of the country.
4. Admitted Insurer an insurer who has received a certificate of authority from a state's department of
insurance which authorizes them to conduct insurance business in that state.
5. Agent an individual or organization that's authorized to solicit, sell, and transact (bind)
coverage for specific insurance providers under the terms of one or more agent
contracts.
6. Authorized Insur- This is an admitted insurer.
er
7. Broker this is a person who represents himself and the insured (i.e. the client or cus-
tomer). A _____ cannot bid coverage on behalf of an insurance carrier because
the _______ is not appointed as an agent.
8. Captive Insurer This is a ______ that's established and owned by a parent firm for the purpose of
insuring the parent firm's loss exposure.
9. Certificate of Au- this is a license that's issued to an insurer by an insurance department (or equiv-
thority alent state agency) that authorizes that company to conduct insurance business
in that particular state.
10. Claims Depart- responsible for processing, investigating, and playing claims.
ment
11. Divisible Surplus
, Xcel Solutions Life and Health Exam
This is the amount of earnings that are paid to policy owners as dividends after
the insurance company sets aside funds required to cover reserves, operating
expenses, and general business purposes.
12. Domestic Insurer This is an insurer with it's principal or home office in the state in which it's
authorized.
13. Foreign Insurer This is an insurer whose principal office or domicile location is in a state that is
different from the state in which it's transacting insurance business.
14. Fraternal Benefit This is a non-profit benevolent organization that provides insurance to its mem-
Society bers.
15. Independent In- This is an agency that can represent any number of insurance companies through
surance Agency contractual agreements. Unlike a captive agency, they are not limited to one
insurance company.
16. Insurance This is the transfer of risk through the pooling or accumulation of funds.
17. Insured This is the customer who receives insurance protection under an insurance policy.
18. Insurer an insurance company
19. Lloyds of London This is NOT an insurer but a group of individuals and companies that underwrite
unusual insurance policies.
20. Marketing Divi- responsible for acquiring prospective applicants through various advertising me-
sion dia.
21. Monoline Insurer this is an insurance carrier that only sells one line of insurance
22. Multi-line Insurer This is an insurance company or independent agent that sells more than one line
of insurance
23.
, Xcel Solutions Life and Health Exam
Mutual Insur- This is an insurance company that's characterized by having no capital stock, being
ance Company owned by their policy owners, and typically issuing participating insurance
24. Non-Admitted This is an insurer that had not received a certificate of authority from a state's
(Unauthorized) department of insurance which authorizes it to conduct insurance business in that
Insurer state.
25. Nonparticipat- typically issued by stock companies.
ing policy Does not allow owners to participate in dividends or to elect the board of directors.
26. Participating Pol- pays policy dividends to policy owners.
icy By receiving dividends, policy owners share in the company's divisible surplus and
also elect the company's board of directors.
27. Personal Pro- represents one or more specific insurers.
ducing General don't recruit, train, or supervise career agents.
Agency (PPGA)
28. Policy Owner This is a person who's responsible for the payment of premiums and who pos-
sesses all ownership rights of the contract
Typically the one who is insured.
29. Private (Com- owned by private citizens or groups that offer one or more insurance lines.
mercial) Insurer Commercial insurers are NOT government-owned.
30. Producer This is an individual who's licensed by one or more states to sell, solicit or transact
insurance in a given state.
31. Proposed In- This is a person whose life will be covered by an insurance policy.
sured
32. Public Adjuster This person acts on behalf of a consumer who's settling an insurance claim.
33.
