API 28

Antitrust

Refers to legislation that opposes trusts or unfair business practices
Sherman Act

Prohibits collusion among businesses to gain monopoly power.
Guaranty funds

Is a system through which claims of insolvent property and liability insurers are paid.
Risk retention group

Provides limited insurance lines to business organizations.
Filing

Is the process of submitting information to state ins dept for approval.
Loss costs

The expected losses related to each exposure unit.
Market conduct exam

Is a review of an insurer’s underwriting and rate making practices
Declination

Occurs when an insurer rejects an application
Termination

Is a policy cancellation during its term or a policy non renewal at the end of its term.
Annual Statement

Are formal financial reports presented to state regulators
Statutory Accounting

Employs a set of rules and procedures for insurance financial reporting.
Insurance Regulation Information System (IRIS)

The early warning system for potential financial failure of an ins. Company.
Risk-based capital

Is a model for developing the amount of capital an insurer must have available.
Accreditation program

Is a certification program for state insurance depts.
Surplus lines

Describes any insurance for which there is no licensed insurer within the state.
Purchasing group

Is a group of insurance buyers who purchase liability insurance together.

Author

avoegeli

14757

Card Set

API 28

Description

Chapter 4

Updated

2010-04-16T03:23:20Z

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