Wisconsin Life Insurance Exam Prep exam Already Passed!!

Stock insurer - - Owned by stockholders/shareholders - Pays taxable dividends to shareholders if a profit is made -Issues nonparticipating policies (non-PAR) Mutual Insurer - - An insurer that is owned by its policyholders - If company is profitable, excess premiums are returned as non-taxable dividend -Issues participating (Par) policies Fraternal Benefit Societies - -Life or health insurance companies formed to provide insurance for members of an affiliated lodge, religious organization, or fraternal organization with a representative form of government. - Members are certificate holders - Members can acquire additional charges if premiums are not sufficient enough to meet claims Reciprocal Insurers - -Unincorporated groups of people that provide insurance for one another through individual indemnity agreements - Ran by an attorney-in-fact - Members are assessed the amount they have to pay if loss occurs to any member of the group Risk Retention Group - -A liability insurance company owned by its members, which are exposed to similar liability risks by virtue of being in the same business or industry. e.g. car dealers or butchers Lloyd's Associations - -Insurance provided by individual underwriters not companies - Commonly insures things such as hole-in-one contests, celebrity body parts, etc. Self-insurance - -A special form of planned retention by which part or all of a given loss exposure is retained by the firmFederal Insurer - -Examples: Social security benefits, military life insurance, federal employee benefits and retirement benefits. -Also funds programs to cover catastrophic risk such as; war risks, flooding, and crop loss State level government insurance - Examples: Workers Compensation, disability insurance, & medical insurance for the needy Domestic Insurer - An insurance company that conducts business in the state of incorporation. Foriegn Insurer - Any state other than the state where incorporated Alien Insurer - An insurance company that is incorporated outside the United States. Certificate of Authority - state license for an insurance company