Xcel Terms - CHAPTER 1 - PART 4

Risk Retention Group

This is a group-owned liability insurer that assumes and spreads product liability and other forms of commercial liability risks among its members.

Sales Department

This department acquires clients through one-on-one meetings in which consumers complete applications.

Self-Insurer

This is a company that establishes a self-funded plan to cover potential losses rather than transferring the risk to an insurance company.

Service Representatives

These are customer service employees. they are not required to obtain a license because they neither sell nor solicit coverage, and they don’t bind coverage.

Solicitors

These are the individuals who schedule sales meetings between consumers and the producers for whom they work. Some states separately license these individuals.

Stock Insurance Company

This is an insurance company that’s owned and controlled by a group of stockholders (or shareholders) whose investment in the company provides the safety margin necessary in the issuance of guaranteed, fixed premium, nonparticipating policies.

Surplus Lines Insurance

This is non-traditional insurance that’s only available from a surplus lines insurer. This type of insurance provides coverage for substandard or unusual risks and is not available through private or commercial carriers.

Unauthorized Insurer

This is a non-admitted insurer.

Underwriting Department

This is the department within an insurance company that’s responsible for reviewing applications, approving or declining applications, and assigning risk classifications.