Insurance that covers potential losses that would be financially serious but would not threaten the firm’s survival.
Insurance Encyclopedia
Insurance Directives
Three generations of both life and non-life directives The first directives paved the way for any insurer authorised in any Member State to set up a branch, agency or establishment in any other EC state, without restriction by the host, subject only to the host’s regulatory requirements, now largely harmonised. The second generation created free movement of insurance services within the EC by abolition of restrictions to sell across national boundaries. The third generation completed the move towards a single insurance market by abolishing the right of a host nation to insist upon authorising insurers established in other Member States. Authorisation in one state became a Single European Licence, allowing an insurer, without authorisation from any other state: (a) to establish elsewhere; and (b) to sell into other states from establishments outside those states. Post-authorisation regulation is carried out by the insurer’s home state to complete the twin aims of single licence and home country control. See FOURTH MOTOR INSURANCE DIRECTIVE.
Insurance Entities
Any corporate body or individual which is operating as an insurer, reinsurer or insurance intermediary and which is subject to Insurance/IRDA regulations.
Insurance Essential
Insurance that is either compulsory or covers potential losses that would threaten the continued survival of the firm.
Insurance examiner
The representative of a state insurance department assigned to participate in the official audit and examination of the affairs of an insurance company.
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The individual who administers the examining and auditing of insurers. This person is considered a representative of the state’s insurance department.
Insurance exchange
See: Reciprocal exchange.
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(i) Operating through an attorney- in- fact, the members of an Insurance exchange share in the exchange’s profits and losses in proportion to the amount of Insurance each member purchases from the exchange (Also known as a reciprocal exchange),(ii) Market place, such as Lloyd’s of London or insurance exchanges operating in several states of USA where underwriters, Agents and brokers gather to negotiate Insurance and Reinsurance.
Insurance fraud
When someone deceives an insurance company in order to collect money to which they are not entitled. Insurance fraud is an enormous problem for the industry as a whole.
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The presentation of a false claim to an insurer with the intent to defraud the insurer.
Insurance guaranty act
An act that provides funds that are used as a guaranty for policyholders in the event his or her insurer becomes insolvent.
Insurance Guaranty Funds
State Funds that provide for the payment of unpaid claims of insolvent insurers.
Insurance hall of fame
An organization that selects people to honor based on the contributions they have made to insurance.