AD BANKER Personal lines

EXAM ELABORATIONS Sep 4, 2025
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AD BANKER Personal lines

Lloyd's of London - CORRECT ANSWER -Not an insurance company, but consists of groups of underwriters called Syndicates, each of which specializes in insuring a particular type of risk.

Fraternal Benefit societies - CORRECT ANSWER -Social organizations that engage in charitable and benevolent activities that provide heath and life insurance to members; member are typically part of a particular faith, lodge, order, or society

RRG Risk retention group - CORRECT ANSWER -A group owned insurer that assumes and spreads the liability related risk of its member's. Membership is limited to risks with similar liability exposures such as theme parks, go cart tracks or water slides.

Residual Markets - CORRECT ANSWER -A private coverage source of last resort for businesses and individuals who have been rejected by voluntary market insurers.

Reinsurance Companies - CORRECT ANSWER -An insurance company that assumes all or a portion of a risk from a primary or ceding insurance company.

Financial Rating Services - CORRECT ANSWER -They evaluate and rate the financial stability of insurance companies

Domestic Insurer - CORRECT ANSWER -An insurer doing business in the jurisdiction in which it is incorporated.

Foreign insurer - CORRECT ANSWER -An insurer licensed to operate in a state but incorporated in another state.

Alien insurer - CORRECT ANSWER -An insurer domiciled in a country other than the United States.

Addmitted - CORRECT ANSWER -Authorized by state commissioner to do business in that state.

NAIC (National Association of Insurance Commissioners) - CORRECT ANSWER - Provides resources, research, legislative and regulatory recommendations and interpretations for state insurance regulators. Consists of all state and territorial insurance commissioners or regulators. NAIC had NO legal authority.

Stock insurance company - CORRECT ANSWER -Owned by stock holders or shareholders and its dividends are taxable.

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Category: EXAM ELABORATIONS
Added: Sep 4, 2025
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AD BANKER Personal lines Lloyd's of London - CORRECT ANSWER -Not an insurance company, but consists of groups of underwriters called Syndicates, each of which specializes in insuring a particular t...

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