Xcel Terms - CHAPTER 1 - PART 2

Foreign Insurer

 This is an insurer whose principal office or domicile location is in a state that’s different from the state in which it’s transacting insurance business.

Fraternal Benefit Society

This is a non-profit benevolent organization that provides insurance to its members.

Independent Insurance Agency

This is an agency that can represent any number of insurance companies through contractual agreements. Unlike a captive agency, they are not limited to one insurance company.

Insurance

This is the transfer of risk through the pooling or accumulation of funds.

Insured

This is the customer who receives insurance protection under an insurance policy.

Insurer

  This is an insurance company.

Lloyds of London

This is NOT an insurer but a group of individuals and companies that underwrite unusual insurance policies.

Marketing Division

This is the division that’s responsible for acquiring prospective applicants through various advertising media.

Monoline Insurer

This is an insurance carrier that only sells one line of insurance.

Multi-Line Insurer

This is an insurance company or independent agent that provides a “one-stop-shop” for businesses or individuals who are seeking coverage for all of their insurance needs. For example, many large insurers offer individual policies for automobile, homeowner, long-term care, life, and health insurance needs.

Mutual Insurance Company

This is an insurance company that’s characterized by having no capital stock, being owned by their policy owners, and typically issuing participating insurance.

Non-Admitted (Unauthorized) Insurer

This is an insurer that has not received a certificate of authority from a state’s department of insurance which authorizes it to conduct insurance business in that state.