What document must an insurer receive in order to transact insurance in this state?
All insurers, regardless of the state in which they are chartered, must obtain a Certificate of Authority from the California Insurance Department before they can transact insurance in the state.
Which of the following terms is associated with a mutual insurer becoming a stock insurer?
Which of the following terms is associated with a mutual insurer becoming a stock insurer? – When a mutual insurer becomes a stock company, this is called “de-mutualization.”
Who regulates insurance companies USA?
The National Association of Insurance Commissioners (NAIC) is the U.S. standard-setting and regulatory support organization created and governed by the chief insurance regulators from the 50 states, the District of Columbia and five U.S. territories.
What does transact insurance mean?
Transacting insurance is a term used to describe the activities and practices related to putting into effect an insurance contract, and it includes such activities as solicitation and offer of services, submission of a proposal, and undertaking preliminary and continuing discussions and negotiations to convince another …
When an insurer has met the qualifications necessary to transact business in California it is said to be?
The term for an insurer which has met the conditions required to transact business in the State of California is “admitted“.
A life-only agent is authorized to transact insurance on human lives including endowments and fixed annuities. An accident and health agent is authorized to transact coverage for sickness and bodily injury, including disability income.
What is an insurance broker according to California insurance Code?
(a) An insurance broker is a person who, for compensation and on behalf of another person, transacts insurance other than life, disability, or health insurance with, but not on behalf of, an admitted insurer.
The answer lies in a law passed in 1945 called the McCarran-Ferguson Act. This law gives states the authority to regulate insurers. … The McCarran-Ferguson Act restores power to the states. It gives states the right to tax and regulate insurers.
What is the Consideration that an insurer gives to the insured under an insurance contract?
What is the consideration that an insurer gives to the insured under an ins contract? Consideration is the thing of value exchanged under a contract. The insured’s consideration is the premium; in return the insurer promises to pay for certain losses if they occur.
Which of the following is a type of insurance where an insurer transfers?
Which of the following is a type of insurance where an insurer transfers loss exposures from policies written for its insureds? Reinsurance is an arrangement by which an insurance company transfers a portion of a risk it has assumed to another insurer.
When an insured makes truthful statements on the application for insurance and pays the required premium it is known as which of the following?
Insurable interest and consent. When an insured makes truthful statements on the application for insurance and pays the required premium, it is known as what? Consideration. And insurance contract requires that both the insured and the insurer meet certain conditions in order for the contract to be enforceable.