XCEL Solutions
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1. Reserve funds held by the company to help future claims. minimum reserves are usually
set by the state Department of Insurance.
2. 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.
3. Stock companies insurance companies owned and controlled by a group of stockholders whose
(for the purpose investment in the company provides the safety margin necessary in issuance of
of insurance) guaranteed, fixed premium, nonparticipating policies.
4. Nonparticipating insurance under which the insured is not entitles to share divisible surplus of the
plan company.
5. Mutual compa- insurance companies characterized by having no capital stock; it is owned by its
nies policy owners and usually issues participating insurance.
6. Participating Plan a plan under which the policy owner receives shares (commonly called dividends)
of divisible surplus of the company.
7. 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.
8. Fraternal Benefit nonprofit benevolent organization that provide insurance to its members. Pro-
Societiesare ducers 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.
9. Fair Credit Re-
porting Act
1/5
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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.
10. Buyer's Guide an informational consumer guide books that explain insurance policies and insur-
ance concepts: in many states, they are required to be given to applicants when
certain types of coverages are being considered. often used with life insurance,
long-term care insurance, and annuities.
11. Policy Summary a summary of the terms of an insurance policy, including conditions, coverage
limitations, and premiums. Policy summaries are often used with life insurance,
long-term care insurance, and annuities.
12. National Asso- an association of all of the state insurance commissioners active in insurance
ciation of In- regulatory problems and in forming and recommending model legislation and
surance Commis- requirements. The NAIC does not directly MAKE laws, as laws are made at the state
sioners (NAIC) level. they do work on suggesting standards for states to adopt with the goal of a
standardizing the insurance industry throughout the United States of America.
13. State Guaranty established by each sate to support insurers and protect consumer in the case
Association of insurer insolvency, guaranty associations are funded by insurers though as-
sessments. All authorized insurers are legally required to participate in the State
Guaranty Association for any state they are authorized to do business in regardless
of where their corporate office is.
14. Life Insurance insurance against loss due to the death of a particular person (the insured) upon
whose death the insurance company agrees to pay a stated sum or income to the
beneficiary. In its purist form, life insurance states, "we will pay this amount when
this person dies."
15. Term Life Insur- protection for a set number of years; expiring without value if the insured survives
ance the stated period, which may be one or more years. Term life is designed to provide
temporary protection in case a person dies during a set period of time.
2/5
Study online at https://quizlet.com/_80xtlv
1. Reserve funds held by the company to help future claims. minimum reserves are usually
set by the state Department of Insurance.
2. 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.
3. Stock companies insurance companies owned and controlled by a group of stockholders whose
(for the purpose investment in the company provides the safety margin necessary in issuance of
of insurance) guaranteed, fixed premium, nonparticipating policies.
4. Nonparticipating insurance under which the insured is not entitles to share divisible surplus of the
plan company.
5. Mutual compa- insurance companies characterized by having no capital stock; it is owned by its
nies policy owners and usually issues participating insurance.
6. Participating Plan a plan under which the policy owner receives shares (commonly called dividends)
of divisible surplus of the company.
7. 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.
8. Fraternal Benefit nonprofit benevolent organization that provide insurance to its members. Pro-
Societiesare ducers 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.
9. Fair Credit Re-
porting Act
1/5
, XCEL Solutions
Study online at https://quizlet.com/_80xtlv
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.
10. Buyer's Guide an informational consumer guide books that explain insurance policies and insur-
ance concepts: in many states, they are required to be given to applicants when
certain types of coverages are being considered. often used with life insurance,
long-term care insurance, and annuities.
11. Policy Summary a summary of the terms of an insurance policy, including conditions, coverage
limitations, and premiums. Policy summaries are often used with life insurance,
long-term care insurance, and annuities.
12. National Asso- an association of all of the state insurance commissioners active in insurance
ciation of In- regulatory problems and in forming and recommending model legislation and
surance Commis- requirements. The NAIC does not directly MAKE laws, as laws are made at the state
sioners (NAIC) level. they do work on suggesting standards for states to adopt with the goal of a
standardizing the insurance industry throughout the United States of America.
13. State Guaranty established by each sate to support insurers and protect consumer in the case
Association of insurer insolvency, guaranty associations are funded by insurers though as-
sessments. All authorized insurers are legally required to participate in the State
Guaranty Association for any state they are authorized to do business in regardless
of where their corporate office is.
14. Life Insurance insurance against loss due to the death of a particular person (the insured) upon
whose death the insurance company agrees to pay a stated sum or income to the
beneficiary. In its purist form, life insurance states, "we will pay this amount when
this person dies."
15. Term Life Insur- protection for a set number of years; expiring without value if the insured survives
ance the stated period, which may be one or more years. Term life is designed to provide
temporary protection in case a person dies during a set period of time.
2/5
