A.D. Banker -Life/Health Insurance Chapter 1 General Insurance
What is the role of a state's executive branch? - CORRECT ANSWER -The role of a state's executive branch is to enforce the existing statutes that have been put in place.The Commissioner, Director, or Superintendent of Insurance is typically appointed (or in some jurisdictions elected) by the Governor, and the Commissioner has the power to issue rules and regulations to help enforce these statutes
Insured - CORRECT ANSWER -The person or entity that has insurance protection under a policy for a covered loss
Where is the insurance industry regulated? - CORRECT ANSWER -Regulated at the state level through the legislative judicial an executive branches.
Legislative Branch - CORRECT ANSWER -Writes and passes state insurance laws or statutes designed to protect the insuring public
Judicial Branch - CORRECT ANSWER -Responsible for interpreting and determining the constitutionality of the statues.
State's Executive Branch - CORRECT ANSWER -To enforce the existing statues
Commissioner, Director or Superintendent of Insurance - CORRECT ANSWER - Represent the executive branch and has the power to issue rules and regulations t help enforce these statues
National Association of Insurance Commissioners (NAIC) - CORRECT ANSWER -The regulatory support organization created and governed by the chief insurance regulators and commissioners from the 50 states, DC and 5 US territories
What do the NAIC provide? - CORRECT ANSWER -Resources, research, legislative and regulatory recommendations and interpretation for state insurance regulators
Insurers (Insurance Companies or Carriers) - CORRECT ANSWER -Provide insuranxe coverage by issuing particular insurance policies or contracts
Insurance Agencies - CORRECT ANSWER -Independent sales organizatios that provide service and dstribute insurance policies to consumers
Insurance Agents or Producers - CORRECT ANSWER -Licensed individuals representing an insurance company when transacting insurance business. 1 / 2
Insurance Regulation at the state level - CORRECT ANSWER -The legislative branch writes and passes state insurance laws, or statutes, to protect the insuring public.The judicial branch is responsible for interpreting and determining the constitutionality of the statutes..
National Association of Insurance Commissioners (NAIC) - CORRECT ANSWER -The regulatory support organization created and governed by the chief insurance negulators and cmmissioners from the 50 states, DC & five US territories
The goal of the NationalAssociation of Insurance Commissioners - CORRECT ANSWER-Is to promote state uniformity
Carriers - CORRECT ANSWER -Another name for insurance companies
Stock Insurer - CORRECT ANSWER -owned by the stockholder or shareholders
Board of Directors of a Stock Insurance Company - CORRECT ANSWER -Elected by stockholders to manage the company. The board elects officers to handle the day-to- day activities.
Stockholder's Income - CORRECT ANSWER -The company's profits and may receive corporate dividends taxable as ordinary income IF declared by the Directors. Dividends are not guaranteed
Non-participating policies - CORRECT ANSWER -What's traditionally issued to stock insures since policyholders are not entitled to dividends
Mutual insurer - CORRECT ANSWER -Mutual Insurance Company is owned by policyholders
Members - CORRECT ANSWER -Mutual Insurance Company policyholders.Considered the owners, but don't directly manage the company
Board of Directors of Mutual Insurance Company - CORRECT ANSWER -Elected by the policyholders to manage the company, but officers elected by the board handles the day-to-day operation
Non-taxable Dividends - CORRECT ANSWER -If declared by the board, policyholders may receive non-taxable dividends as a return on unused premium. They are not guaranteed and are considered a return of premium based o any surplus at the end of the year once claims and operating expenses have been paid
Participating Policies - CORRECT ANSWER -Policies issued to Mutual insurers
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