The process through which insurance companies spread large risks among other
insurers.
The insurer looking to spread some of the risk is the ceding company. The insurer
accepting the risk is the reinsurer. The ceding company pays a premium to the
reinsurer for its coverage. When a reinsured loss occurs, the reinsurer pays its share of
the claim to the ceding company.
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Reinsurance
Offer, acceptance, consideration, competent parties, and legal purpose
An applicant makes an insurance offer, which results in a contract (policy) only if the
offeree (insurer) accepts the offer (application). The applicant's consideration is the
signed application and payment of the first premium.
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The five basic elements of a valid contract
The natural process by which people contend with the perils faced daily, of which
there are five common techniques. Five common risk management techniques:
avoidance, reduction, retention, sharing, and transfer.
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Risk Management
Insurers can be categorized by their state of domicile. There are three categories,
known as domestic, foreign, and alien insurers.
Example: Excel Insurance Co. is chartered in Delaware, where Excel is considered a
domestic company. In Illinois or any other state where Excel is admitted to sell
insurance, it is a foreign company. In Canada or any other country, it is an alien
company.
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Domestic, Foreign, and Alien Insurers
Two variations of the career agency system in which producers represent a single
company. One is headed by a company employee called a general manager (GM),
the other by an independent contractor called a general agent (GA).
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insurers.
The insurer looking to spread some of the risk is the ceding company. The insurer
accepting the risk is the reinsurer. The ceding company pays a premium to the
reinsurer for its coverage. When a reinsured loss occurs, the reinsurer pays its share of
the claim to the ceding company.
Give this one a try later!
Reinsurance
Offer, acceptance, consideration, competent parties, and legal purpose
An applicant makes an insurance offer, which results in a contract (policy) only if the
offeree (insurer) accepts the offer (application). The applicant's consideration is the
signed application and payment of the first premium.
, Give this one a try later!
The five basic elements of a valid contract
The natural process by which people contend with the perils faced daily, of which
there are five common techniques. Five common risk management techniques:
avoidance, reduction, retention, sharing, and transfer.
Give this one a try later!
Risk Management
Insurers can be categorized by their state of domicile. There are three categories,
known as domestic, foreign, and alien insurers.
Example: Excel Insurance Co. is chartered in Delaware, where Excel is considered a
domestic company. In Illinois or any other state where Excel is admitted to sell
insurance, it is a foreign company. In Canada or any other country, it is an alien
company.
Give this one a try later!
Domestic, Foreign, and Alien Insurers
Two variations of the career agency system in which producers represent a single
company. One is headed by a company employee called a general manager (GM),
the other by an independent contractor called a general agent (GA).
Give this one a try later!
