Idaho Insurance Law (Health & Life) with Complete Solutions

Reciprocity - ANSWER-A mutual interchange of rights and privileges Solvency - ANSWER-Ability to meet financial obligations Statute - ANSWER-A formal written law enacted by legislature Statutory - ANSWER-Regulated by a law Locations of Incorporation - ANSWER-Domestic, foreign, or alien Domestic Insurer - ANSWER-An insurance company incorporated in the same state it transacts business Foreign Insurer - ANSWER-An insurance company incorporated outside of the the state it transacts business, but within the U.S. Alien Insurer - ANSWER-An insurance company incorporated outside of the U.S. Stock Company - ANSWER-Insurance company that is owned by stockholders (who share in any profits or losses) and that issues nonparticipating policies; taxible dividends are paid to the stockholders Mutual Company - ANSWER-Insurance company that is owned by policyowners and that issues participating policies; excess premiums (nontaxable dividends) may be returned to the policyowners Fraternal Benefit Society - ANSWER-Considered to be more of charitable institution, not an insurer; formed to provide benefits for its members which include affiliated lodges, religious organizations etc; not subject to the same regulations of insurers offering public coverage