Delaware L&H
What is Insurance - ANS-a contract that indemnifies another against loss. damage, or
liability arising from an unknown event.
Indemnify - ANS-to make a person whole by restoring that person to the same financial
position that existed before the loss
Property Insurance - ANS-protects the insured against the financial consequences of
the direct or consequential loss or damage to property of every kind.
Property insurance policies cover the risk of damage or loss to property, which is de
ned as building, equipment, stock, or contents.
Casualty Insurance - ANS-Protects the insured against the financial consequences of
legal liability, including that for death, injury, disability, or to real or personal property.
Casualty insurance contracts include automobile policies, general liability policies,
workers' compensation coverage, crime insurance, surety (bonding), boiler and
machinery coverages, and many others
Life Insurance - ANS-Insurance coverage on human lives, including endowments and
annuities, and may include benefits in the events of accidental death or dismemberment
and benefits for disability.
It is designed to protect against the risk of premature death.
Annuity - ANS--provides guaranteed income for the life of an annuitant.
-Designed to protect against the risk of living too long- outliving one's financial
resources during retirment
Accident and health/sickness insurance - ANS-protects the insured against financial
loss caused sickness, bodily injury, or accidental death and may include benefits for
disability income
Credit - ANS-is a limited line of insurance protecting the insured, who is usually a
creditor, against the financial consequences should a debtor be unable to pay debts as
a result of illness or death.
Stock Insurance Company- Stock Insurers - ANS-company that consists of
Stockholders, also known as shareholders, who own shares in the company.
,A stock company is referred to as a NON-PARTICIPATING COMPANY because policy
holders do not participate in dividends resulting from stock ownership.
Mutual Insurers - ANS-In a mutual company, there are no stockholders. ownership rests
with the policyholders.
sometimes referred to as PARTICIPATING COMPANIES because the policy owners
participate in dividends.
Funds not paid out after paying claims and not used in paying for other costs of
operation may be returned to the policyholders in the form of POLICY DIVIDENDS.
Dividends from a mutual may never be guaranteed and are not taxable.
Fraternal Insurers- Fraternal benefit societies - ANS-are primarily life insurance carriers
that exist as social organizations and usually engage in charitable and benevolent
activities.
Fraternals are distinguished by the fact that their membership is usually drawn from
those who are also members of a lodge or fraternal organization.
They operate under a special section of the state insurance code and receive some
income tax advantages.
One distinctive characteristic of fraternal life insurance is the open contract, which
allows fraternals to assess their certificate-holders (charge additional, unscheduled
premiums) in times of financial difficulty.
Domestic Insurers - ANS-A company is a domestic insurer in the state in which it is
incorporated.
Foreign Insurer - ANS-A foreign insurer is licensed to conduct business in the states
(DC or other US territories) other than the one in which it is incorporated.
Alien Insurer - ANS-are companies incorporated in a country other than the United
States, D.C., or any US territorial possession
Authorized (Admitted) Insurer - ANS-means an insurer that is entitled to transact
insurance within the state, having complied with the law and satisfying all conditions to
transacting insurance.
, Unauthorized (Non-admitted) Insurer - ANS-means an insurer that is not entitled to
transact insurance within the state
Producers - ANS-Producers may function as agents, representing the insurance
company
or as brokers, representing the potential insured.
Producers acting as agents are not only categorized by their function in the industry but
also by the line of insurance they sell
Types of Producers - ANS-Life and Health Agents
Property and Casualty Agents
Brokers
Solicitors
Insurance Consultants
Life and Health Agents - ANS-Generally, life and health insurance agents represent the
insurer to the buyer with respect to the sale of life and health insurance products.
The agents are appointed by the insurer, and usually the agent's authority to represent
the insurer is specified in the agency agreement between them, which is a working
agreement between the agent and the insurer.
Life and health insurance agents generally do not have the authority to issue or modify
insurance contracts.
Customarily, life and health insurance agents are authorized to solicit, receive, and
forward applications for the contracts written by their companies.
Property and Casualty Agents - ANS-Agents appointed by property and liability
insurance companies generally are granted more authority.
These agents may BIND or commit their companies by oral or written agreement.
They sometimes inspect risks for the insurance company and collect premiums due.
They may be authorized to issue many types of insurance contracts from their own
offices.
What is Insurance - ANS-a contract that indemnifies another against loss. damage, or
liability arising from an unknown event.
Indemnify - ANS-to make a person whole by restoring that person to the same financial
position that existed before the loss
Property Insurance - ANS-protects the insured against the financial consequences of
the direct or consequential loss or damage to property of every kind.
Property insurance policies cover the risk of damage or loss to property, which is de
ned as building, equipment, stock, or contents.
Casualty Insurance - ANS-Protects the insured against the financial consequences of
legal liability, including that for death, injury, disability, or to real or personal property.
Casualty insurance contracts include automobile policies, general liability policies,
workers' compensation coverage, crime insurance, surety (bonding), boiler and
machinery coverages, and many others
Life Insurance - ANS-Insurance coverage on human lives, including endowments and
annuities, and may include benefits in the events of accidental death or dismemberment
and benefits for disability.
It is designed to protect against the risk of premature death.
Annuity - ANS--provides guaranteed income for the life of an annuitant.
-Designed to protect against the risk of living too long- outliving one's financial
resources during retirment
Accident and health/sickness insurance - ANS-protects the insured against financial
loss caused sickness, bodily injury, or accidental death and may include benefits for
disability income
Credit - ANS-is a limited line of insurance protecting the insured, who is usually a
creditor, against the financial consequences should a debtor be unable to pay debts as
a result of illness or death.
Stock Insurance Company- Stock Insurers - ANS-company that consists of
Stockholders, also known as shareholders, who own shares in the company.
,A stock company is referred to as a NON-PARTICIPATING COMPANY because policy
holders do not participate in dividends resulting from stock ownership.
Mutual Insurers - ANS-In a mutual company, there are no stockholders. ownership rests
with the policyholders.
sometimes referred to as PARTICIPATING COMPANIES because the policy owners
participate in dividends.
Funds not paid out after paying claims and not used in paying for other costs of
operation may be returned to the policyholders in the form of POLICY DIVIDENDS.
Dividends from a mutual may never be guaranteed and are not taxable.
Fraternal Insurers- Fraternal benefit societies - ANS-are primarily life insurance carriers
that exist as social organizations and usually engage in charitable and benevolent
activities.
Fraternals are distinguished by the fact that their membership is usually drawn from
those who are also members of a lodge or fraternal organization.
They operate under a special section of the state insurance code and receive some
income tax advantages.
One distinctive characteristic of fraternal life insurance is the open contract, which
allows fraternals to assess their certificate-holders (charge additional, unscheduled
premiums) in times of financial difficulty.
Domestic Insurers - ANS-A company is a domestic insurer in the state in which it is
incorporated.
Foreign Insurer - ANS-A foreign insurer is licensed to conduct business in the states
(DC or other US territories) other than the one in which it is incorporated.
Alien Insurer - ANS-are companies incorporated in a country other than the United
States, D.C., or any US territorial possession
Authorized (Admitted) Insurer - ANS-means an insurer that is entitled to transact
insurance within the state, having complied with the law and satisfying all conditions to
transacting insurance.
, Unauthorized (Non-admitted) Insurer - ANS-means an insurer that is not entitled to
transact insurance within the state
Producers - ANS-Producers may function as agents, representing the insurance
company
or as brokers, representing the potential insured.
Producers acting as agents are not only categorized by their function in the industry but
also by the line of insurance they sell
Types of Producers - ANS-Life and Health Agents
Property and Casualty Agents
Brokers
Solicitors
Insurance Consultants
Life and Health Agents - ANS-Generally, life and health insurance agents represent the
insurer to the buyer with respect to the sale of life and health insurance products.
The agents are appointed by the insurer, and usually the agent's authority to represent
the insurer is specified in the agency agreement between them, which is a working
agreement between the agent and the insurer.
Life and health insurance agents generally do not have the authority to issue or modify
insurance contracts.
Customarily, life and health insurance agents are authorized to solicit, receive, and
forward applications for the contracts written by their companies.
Property and Casualty Agents - ANS-Agents appointed by property and liability
insurance companies generally are granted more authority.
These agents may BIND or commit their companies by oral or written agreement.
They sometimes inspect risks for the insurance company and collect premiums due.
They may be authorized to issue many types of insurance contracts from their own
offices.
