RMIN 4000 UGA- Brown- exam
2 (chapter 5 only)
Major Types of Private Insurers - -Stock Insurers
Mutual Insurers
Lloyds of London
- stock insurer - -a corporation owned by stockholders
objective is to earn profit for stockholders by increasing dividends
- mutual insurer - -a corporation owned by the policyholders
profits are distributed to policy holders by dividends or rate reductions
- types of mutual insurers - -assessment mutual: insurer has the right to
assess policyholders an additional amount if the insurer's financial
operations are unfavorable
advance premium mutual: insurer does not issue assessable policies
-fraternal insurer: provides life and health insurance to members of a social
or religious organization
- Lloyd's of London - -world's leading market that provides services and
physical facilities to write specialized lines of insurance
NOT an insurer
- Lloyd's Brokers - -represent policyholders to arrange coverage with
syndicates
- Lloyd's Syndicates - -Offers insurance contracts in the market
- Members - --join together and provide capital from syndicates, receiving
profits or bearing losses
-most are corporations or limited partnerships
-"names" are high net worth individuals
must meet Lloyd's stringent capital requirements
managing agents- manage the syndicates, who typically specialize in certain
lines
2 (chapter 5 only)
Major Types of Private Insurers - -Stock Insurers
Mutual Insurers
Lloyds of London
- stock insurer - -a corporation owned by stockholders
objective is to earn profit for stockholders by increasing dividends
- mutual insurer - -a corporation owned by the policyholders
profits are distributed to policy holders by dividends or rate reductions
- types of mutual insurers - -assessment mutual: insurer has the right to
assess policyholders an additional amount if the insurer's financial
operations are unfavorable
advance premium mutual: insurer does not issue assessable policies
-fraternal insurer: provides life and health insurance to members of a social
or religious organization
- Lloyd's of London - -world's leading market that provides services and
physical facilities to write specialized lines of insurance
NOT an insurer
- Lloyd's Brokers - -represent policyholders to arrange coverage with
syndicates
- Lloyd's Syndicates - -Offers insurance contracts in the market
- Members - --join together and provide capital from syndicates, receiving
profits or bearing losses
-most are corporations or limited partnerships
-"names" are high net worth individuals
must meet Lloyd's stringent capital requirements
managing agents- manage the syndicates, who typically specialize in certain
lines
