XCEL Solutions Questions With 100% Correct Answers.

Reserve - funds held by the company to help future claims. minimum reserves are usually set by the state Department of Insurance. Multi-line insurer - an insurance company or independent agent that provides a one-stop shop for businesses or individuals seeking coverage for all their insurance needs. For example, many large insurers offer individual policies for automobile, homeowner, long-term care, life and health insurance needs. Stock companies (for the purpose of insurance) - insurance companies owned and controlled by a group of stockholders whose investment in the company provides the safety margin necessary in issuance of guaranteed, fixed premium, nonparticipating policies. Nonparticipating plan - insurance under which the insured is not entitles to share divisible surplus of the company. Mutual companies - insurance companies characterized by having no capital stock; it is owned by its policy owners and usually issues participating insurance. Participating Plan - a plan under which the policy owner receives shares (commonly called dividends) of divisible surplus of the company. reinsurer - a company that provides financial protection to insurance companies. Reinsurers handle risks that are too large for insurance companies to handle on their own and make it possible for insurers to obtain more business that they would otherwise be able to. Fraternal Benefit Societiesare - nonprofit benevolent organization that provide insurance to its members. Producers or agents who only sell within their society, do not receive commission, and stay under a specific premium threshold often have less stringent licensing requirements.Fair Credit Reporting Act - a federal law requiring an individual to be informed if she is being investifated by an inspection company. The law also outlines the sharing and impact of such information and requires individuals to be notified prior to being investigated