A full-time intermediary offering a service on the basis of professional expertise and competence. The broker offers advice and arranges the insurance normally as agent for the insured but is usually remunerated by a commission from the insurer. From January 2005, insurance brokers will be regulated by the FSA.
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An individual or firm that acts as agent for an individual, body or firm in arranging insurance cover and in presenting claims under such cover. At present only Lloyd’s brokers may arrange cover directly with or on behalf of underwriters in the underwriting room.
Insurance Encyclopedia
Insurance Bureau of Canada (IBC)
The trade association of the property/casualty insurance industry in Canada. It concerns itself with such matters as public relations, collection of statistics, and promulgation of forms. It has a substantial permanent staff but also many committees made up of volunteers from the senior ranks of insurance companies.
Insurance Business Rules FSA
(qv) rules relating to the conduct of insurance business. The FSMA empowers the FSA to make rules prohibiting an authorised person, who has permission to effect or carry out contracts of insurance, from carrying on a specified activity. Another rule empowers the FSA to make rules in relation to contracts entered into in the course of carrying on long-term insurance business particularly in regard to linked-policies (s.141(4)). It means that where the FSA has determined that a particular index is no longer permissible it can stop new policies being linked to that index. It can also require that existing linked policies should substitute a new index for the prohibited one.
Insurance Carrier
Synonym for the Insurance Company since it assumes the financial responsibility fort he risk of the Policy holder/s.
Insurance Certificate
A document evidencing the fact of insurance where it is convenient to have such evidence separate from the policy e.g., (1) for issue to a person covered under a group policy; (02) for shipments under a cargo cover; (03) for users of motor vehicles to produce to show that they have the third party covered required as per provisions of MV Act.
Insurance commissioner
In the United States, the head of the state’s insurance department or regulatory agency.
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The individual who heads the state’s agency for insurance regulation. This person may also be referred to as the Director or Superintendent, depending on the state.
Insurance companies
Insurance suppliers incorporated under the Companies Act. This includes: 1. Proprietary companies, i.e. limited liability companies generally constituted under the Companies Act with a subscribed share capital. The shareholders have the ultimate rights to the profits, but in the case of a life insurance company provision has to be made for a share of the profits to go to ‘with profits’ policyholders. 2. Mutual companies. These are notionally owned by the policy holders who share in the distributable profits in proportion to the sums assured and conditions of their policies. Such companies have been common in life insurance but some have demutualised.
Insurance Companies (Legal Expenses Insurance) Regulations 1990
Provisions that state the insured person under a legal expenses policy has the right to choose his own solicitor. The regulations also deal with the conflict of interest that would arise if the legal expenses insurer acting for the claimant was also the liability insurer for the defendant sued by that claimant.
Insurance Company
An organization chartered to operate as an insurer. Any corporation primarily engaged in the business of furnishing insurance protection to the public.
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Every Insurer seeking to carry out the business of insurance India is required to obtain a certificate of registration from the IRDA. (a) The applicant need to be a company registered under the provisions of the Indian Companies Act, 1956. Consequently any person intending to carry on insurance business in India would need to set up separate entity in India. (b) The aggregate equity participation of a foreign company (either by itself or through its subsidiary company or its nominees) in the applicant company cannot exceed twenty six percent of the paid up capital of the insurance company. (c) The applicant can carry on any one of the life insurance business, general insurance business or reinsurance business. Separate companies would be needed if the intent were to conduct more than one business. The name of the applicant needs to contain the words “insurance company” or “assurance company.” (d) A minimum paid up equity capital of rupees one billion in case of an applicant which seeks to carry on the business of life insurance or general insurance; two billion in case of a person carrying on exclusively the business of reinsurance. A promoter is not permitted to hold at any time more than 26 per cent of the paid up capital.
Insurance Comprehensive
A comprehensive Insurance Policy covers under a single insuring agreement all exposures within the general scope of the contract, except those specifically excluded.