A corporation owned by stockholders.
A corporation owned by the policyholders.
Advance Premium Mutual
Owned by the policyholders; there are no stockholders, and the insurer does not issue assessable policies.
Has the right to asses policyholders an additional amount if the insurer’s financial operations are unfavorable.
A mutual insurer that provides life and health insurance to members of a social or religious organization.
Means that a mutual insurer is converted into a stock insurer.
A company that directly or indirectly controls an authorized insurer.
Lloyd’s of London
Not an insurer, but is the world’s leading insurance market that provides services and physical facilities for its members to write specialized lines of insurance.
An unincorporated organization in which insurance is exchanged among the members.
Savings Bank Life Insurance (SBLI)
Refers to life insurance that was sold originally by mutual savings banks in three states: Massachusetts, New York, and Connecticut.
Someone who legally represents the principal and has the authority to act on the principal’s behalf.
Someone who legally represents the insured.
An insurer not licensed to do business in the state.
Surplus Lines Broker
A special type of broker who is licensed to place business with a nonadmitted insurer.
Personal Selling Distribution Systems
Systems in which commissioned agents solicit and sell life insurance products to prospective insured’s.
Personal Producing General Agent (PPGA)
An independent agent who receives special financial consideration for meeting minimum sales requirements.
Direct Response System
A marketing system by which life and health insurance products are sold directly to consumers without a face-to-face meeting with an agent.
Independent Agency System
Type of property and casualty insurance marketing system in which the agent is an independent businessperson representing several insurers.
The agent represents only one insurer or a group of insurers under common ownership.
An insurer in which the salesperson is an employee of the insurer, not an independent contractor.
Mutual Distribution Systems
Insurance marketing method that refers to the use of several distribution systems by an insurer.
A plan for selling individually underwritten property and casualty coverage’s to group members.