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LIFE ACCIDENT AND HEALTH INSURANCE
MISSISSIPPI EXAM 2025| BRAND NEW
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Admitted insurer - Correct Answer-a company that has received a certificate of authority from the state. This certificate permits the company to transact insurance within the state. It certifies that the company has met the states requirements for conducting the business of insurance. Admitted insurers are also called " authorized insurers" Non-admitted insurer - Correct Answer-insurer that transacts business in a state for which it does not hold a certificate of authority. Common in surplus lines insurance. If not for surplus lines insurance then they face penalties. Unauthorized company - Correct Answer-does not sale valid insurance in any state
Producer (agent) - Correct Answer-anyone who sells insurance for another and gets a policy from the insurer Domestic - Correct Answer-the insurance companies home office is its state of incorporation. Insurers doing business in the state in which they are home officed (domiciled) Foreign - Correct Answer-any company that does business in a state other than the one in which it is located Alien - Correct Answer-a company that is incorporated in a country outside the US and is doing business in the US Financial strength and claims paying ability - Correct Answer-one way to distinguish insurers is by ______
Ceding company - Correct Answer-the insurer seeking to transfer some of its risk in reinsurance
- Private insurers
- Government insurers - Correct Answer-2 types of entities providing insurance today
- Stock insurance companies
- Mutual insurance companies - Correct Answer-the 2 largest types of commercial insurance companies Stock insurance companies - Correct Answer-owned by stockholders, these companies dividends, when declared, to their stockholders. Have minimum capital requirements and are governed by a board of directors elected by their stockholders Mutual insurance companies - Correct Answer-owned by their policy owners; have no stockholders. Have minimum capital requirements and are governed by a board of directors. Pay policy dividends to holders.
Demutualization - Correct Answer-the lengthy and complex process of a mutual insurance company transforming into a stock insurance company Medical Care service Providers - Correct Answer-example HMO and PPO. they blend characteristics of commercial insurance companies and medical care providers fraternal benefits society - Correct Answer-an organization composed of individuals who typically share a common ethnic or religious affiliation. have no stock, a rep form of government, not for profit, operate on a lodge system. May provide insurance to their members. primary life insurance and annuity products only available to members Home service companies - Correct Answer-unique distributer of industrial life insurance. typically insurance agent meets the policy holder to collect the premium giving it its name for its service provided industrial life insurance - Correct Answer-traditionally offered as "burial insurance", offers individual coverage in small face amounts, usually less than $10,000. generally require no medical exam to qualify.
risk retention groups - Correct Answer-an insurance company that provides self insurance services to owner members. born from the risk act of 1986. law requires them to follow the laws of at least one state
- coverage extends to all eligible citizens
- citizens receive benefits a social right under law and not through a policy.
- Funding is through taxation, not through premium payments - Correct Answer-ways federal and state insurance programs differ from private insurance companies
- Social Security Insurance
- Medicare
- Medicaid - Correct Answer-3 types of Federal insurance offered
- workers compensation
- unemployment insurance
- state run medical - Correct Answer-3 types of state insurance offered
medicare - Correct Answer-a federal health insurance program designed specifically for people age 65 and over and for certain disabled persons. funded by payroll taxes. coverage is divided into 4 parts A-D medicade - Correct Answer-a program funded by state and federal funds and administered by the states. this program pays for healthcare for the financially needy, regardless of age. workers compensation - Correct Answer-state administered program that protects people who are injured or become sick on the job
- AM Best
- Standard and Poor's
- Moody's
- Duff and Phelps - Correct Answer-4 well known and respected rating organizations
responsible for agency expenses and staffing, and is not an employee of the insurer independent staffing system - Correct Answer-the agency is not affiliated with any single insurer and in fact represents multiple companies. managers hire and fire direct response system - Correct Answer-through mass market advertising such as mail and tv, insurers market to sell directly to consumers, without sales reps
