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Definition
-Established the right of states, not the federal government to regulate insurance
-whatever state says is the only thing that matters |
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| South-Eastern Underwriters Association |
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Definition
| Insurance is interstate commerce when conducted across state lines and is subject to federal regulation. |
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| continued regulation and taxation of the insurance industry by the states are in the public interest (answer to the states) |
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| Financial Modernization Act of 1999 |
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Definition
| Allows banks, insurers, investment firms, and other financial institutions to enter and compete in each other's financial markets |
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| National Association of Insurance Commissioners (NAIC) |
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Definition
| Meets periodically to discuss industry problems and draft model laws in various areas and recommends adoption of these proposals by state legislatures. |
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Definition
| Insurance company domiciled and licenses in the state in which it does business |
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Definition
| An out-of-state insurer that is chartered by another state |
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Definition
| An insurance company chartered by a foreign country and meeting certain license requirements |
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Definition
| Assets that an insurer can show on its statutory balance sheet in determining its financial condition |
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Definition
| Liability items on the insurer's balance sheet and reflect obligations that must be met in the future |
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Definition
| Difference between an insurer's assets and liabilities |
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Definition
| Insurer's must have a certain amount of capital depending on the riskiness of their investments and insurance operations |
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Definition
| Provide for the payment of unpaid claims of insolvent property and casualty insurance. |
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Definition
| Major method used to raise the necessary funds to pay unpaid claims |
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Term
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Definition
| The inducement of a policyholder to drop an existing policy and replace it with a new one that provides little to no economic benefit for the client |
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Definition
| Giving an individual a premium reduction or some other financial advantage not stated in the policy as inducement to purchase the policy. |
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Term
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Definition
| Risk of collapse of entire financial system or financial market in which the failure of a single entity or group of entities can result in the breakdown of the entire financial system. |
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Term
| Credit-based insurance scores |
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Definition
| Majority of insurers use applicant's credit record for purposes for underwriting and rating in auto and homeowner's insurance. |
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