reserves
the accounting measurement of an insurer's future obligations to its policyholders.
multi-line users
Companies that sell more than one
line of insurance
stock companies
a private organization, organized and incorporated under state laws for the purpose of
making a profit for its stockholders.
mutual companies
organized and incorporated under state laws, but they have no stockholders.
reinsurer
specialized branch of the insurance industry because they insure insurers
Fraternal Benefit Societies
noted primarily for their social, charitable, and benevolent activities, have memberships
based on religious, national, or ethnic lines
fair credit reporting act
which is the authority that requires fair and accurate reporting of information
about consumers, including applications for insurance. Insurers must inform applicants about any investigations
that are being made.
buyer's guide
To help ensure that prospective insurance buyers select the most
appropriate plan for their needs and to improve their understanding
of basic product features, most states require agents to deliver a
buyer's guide to consumers whenever they solicit insura
policy summary
contains cost indexes that help the consumer evaluate the suitability of the recommended
product
NAIC
This organization has committees that work regularly to examine various aspects of the insurance industry
and to recommend appropriate insurance laws and regulations.
State guaranty association
All states have established guaranty funds or guaranty associations to support insurers and to protect consumers if
an insurer becomes insolvent. Should an insurer be financially unable to pay its claims, the state guaranty association
will step in and co