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Chapter 5 life New Jersey laws rules and regulations common to all line Questions and Answers 100% correct
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Chapter 5 life New Jersey laws rules and regulations common to all line
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Chapter 5 life New Jersey laws rules andregulations common to all line
The insurer - answerOr principal is the Company organization the issues of policy of
insurance. Insurance companies can be classified in a variety of ways based on
ownership authority to transact business location of incorporation marketing systems or
reading.
Ownership - stock companies - answerAre owned by the stockholders will provide the
capital necessary to Starbush and operate the insurance company and who share in
any profits or losses. Officers are elected by the stockholders and men's sock insurance
companies. Traditionally stock companies issue with non-participating policies in which
the policy owners do not share in profits or losses. A non-participating policy does not
pay dividends to policy owners: however taxable dividends are paid to stockholders
Ownership: Mutual Companies - answerAre owned by the policy owner is an issue
participating policies. Policy owners are entitled to dividends which in the case of mutual
company is our return of excess premiums on there for non-taxable. Dividends or
generated when the premiums and earnings combined exceed the actual cost of
providing coverage, creating a surplus. Dividends are not guaranteed
Location of Incorporation(domicile) - answerInsurance companies are classified
according to the location of incorporation. Regardless of where in insurance companies
Inc. it must obtain a certificate of authority before transacting insurance within the state.
Domestic Insurer company - answerIs an insurance company that is incorporated in the
state. In most cases the companies home office is in the state in which it was formed
four instance a company charge in Pennsylvania would considered a Pennsylvania
domestic compny
A foreign insurer company - answerIsn't insurance company that is incorporated in
another state or territorial position like Puerto Rico a company charted in California
would be a foreign company with the state of New York
An alien insurer company - answerIs an insurance company that is Inc. outside of
United States
Certificate Authority - answerBefore ensures me transact business in the state they
must apply for and be granted a license or certificate of authority from the state
department of insurance and me any financial requirements set by the state. Insurance
who made the states financial requirements and are approved to transact business in
,the state are considered authorize or admitted into the state as a legal ensure those
insurers who have not been approved to do business in the state are considered on off
the rise or non-admit it. Most states have laws that prohibit on authorize insurers to
conduct business in the state except through license express and surplus loan brokers
Insurance agent - answerIs an insurance producer acting as an agent author rise in
writing by any insurance company to solicit negotiate or so insurance contract or collect
premiums on his behalf. The agent is also authorized to counter sign insurance policies
on the company's behalf. The agents are deemed to represent the insurance
Insurance broker - answerWhen an insurance producer negotiate for an insurance
contract on behalf of a client the producer is acting as a broker. And insurance broker
active as a representative of an insured or prospective insured, and helps with
insurance transactions on the insurance behalf for commission, brokerage fee, or other
considerations
An insurance consultant - answerIs a person for a fee commission or other
considerations offers any advice counsel opinion or service regarding the benefits
advantages or disadvantages of any insurance policy issued in the state. Not included
in the insurance consultant definition or a bank trust officers, attorneys, and certified
public accountant will negotiate contracts on behalf of others, or who provide general
financial counsel, if no commission or brokerage fee is paid for those services.
Insurance transaction includes - answersolicitation, negociations, sale, advising and
individual concerning coverage or claims
Sell vs. solicit vs. negotiate - answerSell - to exchange a contract or policy of insurance
by any means for money or to equivalent on behalf of the insurer
Solicit - means to attempt to sell insurance or ask urgent person to apply for a specific
type of insurance from a particular insurer
Negotiate - means the active directly conferring with or offering advice to a purchaser or
protective purchase of a particular contract or policy of insurance concerning any of the
benefits, terms or conditions, provided that the person engage in the act either sells
insurance or tails insurance from insurance for purchasers
Insurance Related Conduct includes : - answerSelling soliciting negotiating and finding
insurance policies: all communication with the insured concerning any terms of the
policy: office management policies affecting insured's: processing claims: transmitting
funds between the insured, producers, premium finance companies and insurance
companies.
Reinsurance - answerIs a contract under which one insurance company indemnifies a
Nother insurance company For part of or all of its liabilities. The purpose is to protect
insurers against catastrophic losses.
, Ceding Insurer vs. assuming insurer - answerThe originating company that produces
insurance on itself from another insurer is called the sudden insured because it said or
gives the risk to the insured. The other insurance is called the assuming insurer or
reinsurer
Facultative Reinsurance v. Treaty Reinsurance - answerWhen insurance is purchased
on a specific policy and is classified as a facultative reinsurance. When an insurer has
an automatic reinsurance agreement between itself and the reinsure in which they
reinsure is bound to except all risks seeded to it, it is classified as a reinsurance treaty.
Treaties are usually negotiated for a period of a year or longer
Extended insurance or retrocession - answerWhen a reinsure or assuming insure has
taken on too many risks and must spread some of its liabilities to other reinsurers.
State laws - answerAnd insurance is and just re-is vested in the public interest. That
means that the insurance is a business that affects many people and demands of the
industry be regulated into activities. It is a highly regulated by the state and federal
entity is in virtually every facet of its operation. They are outlined in the New Jersey
permanent statue test and New Jersey administrative code
Policy is misunderstood by insured - answerIn the event of a claim or loss under the
policy other than life insurance there is often misinterpretation by and insured as to the
policy coverages and limitations. When such misunderstanding cannot be resolved by
the insurer or insured courts are asked to interpret the contract
How a misunderstanding can affect the law - answerIssues that are resolved often
become a president has to have future claims will be settled. Often because of a quart
and interpretation, a regulation or changing the policy form is necessary to clarify the
intent of the policy
Paul vs. Virginia (1868) - answerWhat is an important president concerning the
regulation of insurance. Samuel Paul was a native of Virginia representing New York
insurance companies in his state. Paul chose the right of the state to regulate insurance
by refusing to obtain a license from the state. When he continued to so insurance
without his license, he was arrested and fined $50. The case was carried all the way to
the Supreme Court and it was decided in 1869. And the decision the court stated that
insurance was not interstate commerce. And therefore not subject to regulation by the
federal government.
U.S. vs. South-Eastern Underwriters Association (1944) - answerAfter a period of 75
years the federal government authority to regulate insurance was tested again there
attorney general of the nine states feel the brief on the Sherman act against the south
eastern underwriters association SEUA A corporation rating bureau alleging that the
bureau contributed a combination in restraint of trade. And it's decision of the SEUA
case The Supreme Court reversed the decision from Paul versus Virginia stating that
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