Insurer Licensing
An insurer that is owned by its stockholders and formed as a corporation for the purpose of earning a profit for the stockholders.
Law that says insurers cannot charge a rate until it is approved by state regulators.
What is Prior-approval law?
State statutes that address market conduct related to sales, underwriting, and claims handling.
What are unfair trade practices laws?
This unfair claims practices involves "knowingly misrepresenting _________ about coverage to insureds or claimants."
What are facts?
The ability of an insurer to meet its financial obligations as they become due, even those resulting from insured losses that may be claimed several years in the future.
What is solvency?
An insurer not authorized by the state insurance department to do business within that state.
What is nonadmitted insurer?
Law where insurers must file proposed rates but can use the rates while state approval is pending.
This illegal activity involves producers paying a portion of a premium or commission to a policyholder in exchange for the purchase of a policy.
What is rebating?
This is the amount the insurer estimates and sets aside to pay on an existing claim that has not yet been settled.
What is "reserve"?
An insurer that is owned by its policyholders & formed as a corporation for the purpose of providing insurance to them.
What is a mutual insurer?
An insurer doing business in the jurisdiction in which its incorporated.
What is a domestic insurer?
Rate law that imposes the strictest control of an insurer's rates.
What is mandatory rate law?
This is an association of insurance commissioners from the 50 U.S. states, the District of Columbia, and the five U.S. territories and possessions.
What is the National Association of Insurance Commissioners (NAIC)?
This unfair claims practice states that it is prohibited to "fail to promptly ____________ and settle claims."
What is investigate?
If an applicant cannot obtain insurance in the admitted market, they can go to this type of carrier instead.
What is "surplus lines carrier"?
An insurer domiciled in a country other than the United States.
What is an alien insurer.
Term used when rates are sufficient to pay all claims & the expenses related to those claims, helping to maintain insurer solvency.
What is "adequate"?
Most states require than an insurer notify the insured within a specified period, such as 30 days, before a policy is to be _____________.
What is canceled or nonrenewed?
Claims reps need to be able to justify their actions and provide proper _________________ when asked to do so by state insurance regulators.
What is "documentation"?
This is a state-established fund that provides a system for the payment of some of the unpaid claims of insolvent insurers licensed in that state.
What is a "Guaranty Fund"?
An insurer licensed to operate in a state but incorporated in another state.
What is a foreign insurer?
Insurers are entitled to a fair return but not too _____________ or resulting in an unreasonable profit.
What is "excessive"?
Insurers cannot refuse to issue or renew coverage for an applicant based solely on ________________.
What is geographic location, gender, marital status, or race?
What is 15?
This illegal sales practice happens when producers require the purchase of insurance to be dependent on some other purchase or financial arrangement.
What is "tie-in sales"?