Term
|
Definition
| Company that writes more than one line of insurance. |
|
|
Term
| National Association of Insurance Commissioners (NAIC) |
|
Definition
| Organization that has standing committees that work regularly to examine various aspects of the insurance industry and to recommend appropriate insurance laws and regulations. All state insurance commissioners or directors are members of this group. |
|
|
Term
| National Association fo Insurance and Financial Advisors (NAIFA) and the National Association of Health Underwriters (NAHU) |
|
Definition
| Organizations of life and health insurance agents that are dedicated to supporting the life and health insurance industries and advancing the quality of service provided by insurance professionals. |
|
|
Term
| Fair Credit Reporting Act |
|
Definition
| Act passed in 1970 by federal government which require fair and accurate reporting of information about consumers, including applications for insurance. |
|
|
Term
|
Definition
| Law passed by Congress in 1945 that made it clear that continued regulation of insurance by the states was in the public's best interest. The act led each state to revise its insurance laws to conform to the federal law. |
|
|
Term
| U.S. v. Southeastern Underwriters Association |
|
Definition
| Supreme Court case in 1944 that ruled that the business of insurance is subject to a series of federal laws, many of which were in conflict with existing state laws, and that insurance is a form of interstate commerce to be regulated by the federal government. |
|
|
Term
| Financial Services Modernization Act |
|
Definition
| Law pass by Congress in 1999 which repealed the Glass-Steagall Act. Under this new legislation, commercial banks, investment banks, retail brockerages, and insurance companies can now enter each other's lines of business. |
|
|
Term
|
Definition
| Insurance company that conducts business in the same state in which it is incorporated. |
|
|
Term
|
Definition
| A private insurance organization, organized and incorporated under state laws for the purpose of making a profit for its stock holders. Stockholders may or may not be policyholders. Referred to as nonparticipating company because policyholders do not participate in dividends resulting from stock ownership. |
|
|
Term
|
Definition
| An insurance organization, organized and incoroporated under state laws, but they have no stockholders. Instead, the owners are the policyholders. By issuing particpating policies that pay policy dividends mutual insurers allow there policyowners to share in any company earnings. Referred to as participating companies because the policyowners participate in dividends. |
|
|
Term
| Assessment Mutual Companies |
|
Definition
| An insurance company that is typified by the way in which they charge premiums. The pure version in which each member is assessed by premium a individual portion of losses that actually occur. The advanced premium version charges a premium in advance, at the beginning of the policy period. If the original premiums exceed the operating expenses and losses, the surplus is returned to the policyholders as dividends. However, if the total permiums are not enough to meet losses, additional assessments are levied against the members. |
|
|
Term
|
Definition
| An insurance company organized on the basis of ownership by policyholders. The policyholders themselves insure the risk of the other policyholders. Each policyholder assumes a share of the risk brought to the company by others. The company is managed by an attorny-in-fact. |
|
|
Term
|
Definition
| An association of individuals and companies that invidually underwrite insurance. It's function is to gather and disseminate underwriting information, help its associates settle claims and disputes and, through its member underwriters, provide coverages that might otherwise be unavailable in certain areas. |
|
|
Term
|
Definition
| A specialized branch of the insurance industry because they insure insurers. |
|
|
Term
| Risk Retention Group (RRG) |
|
Definition
| A mutual insurance company formed to insure people in the same business, occupation, or profession. |
|
|
Term
| Fraternal Benefit Societies |
|
Definition
| A nonprofit insurance group which aims to meet the needs of their poorer members. Noted primarily for their social, charitable, and benevolent activities. Have memberships based on religious, national, or ethnic lines. |
|
|
Term
|
Definition
| Offer benefits to subscribers in return for the payment of a premium. Benefits are in the form of services provided by the hospital and physicians participating in the plan. The sell medical and hospital care services, not insurance. Include health maitenance organization (HMO) and preferred provider organization (PPO). |
|
|
Term
|
Definition
| A company that is liscensed to conduct business in states other than the one in which it is incorporated. |
|
|
Term
|
Definition
| Companies incorporated in a country other than the United States, the District of Colombia, or any territorial possession. |
|
|
