Insurance Course Chapter 1 Study Guide

Flashcards covering key vocabulary, classifications, penalties, and regulatory concepts from the Chapter 1 Insurance Study Guide.

Broker

The entity that represents the CLIENT/INSURED.

Private Insurance

Insurance owned by individuals/groups, categorized as proprietary or cooperative.

Government Insurance

Social insurance programs such as Social Security, Medicare, and Medicaid.

Domestic/Foreign/Alien

Classifications of insurance companies based on their location of incorporation.

Stock/Mutual

Classifications of insurance companies based on their ownership structure.

Admitted/Non-admitted

Classifications of insurance companies based on their licensing status.

Regulatory Dates

Specific years noted for changes in insurance regulation, including $1868$, $1944$, $1945$, $1994$, and $1999$.

McCarran-Ferguson Penalty

The penalty associated with this act is $10,000$ and/or $1$ year in prison.

USC 1033 Penalty

The penalty associated with this code is $50,000$ and/or up to $15$ years in prison.

Reinsurance Terms

Terminology including ceding company, reinsurer, primary insurer, and net retention/net line.

NAIC Objectives

The National Association of Insurance Commissioners has a total of $4$ specific objectives.

Agent Authority Types

The three types of authority granted to agents are express, implied, and apparent.

Fiduciary Responsibility

The legal and ethical duty producers owe to both insurers and clients.