ECONOMICS
INSURANCE
|
Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
|
|
|
Mutual company
|
|
|
Domestic company
|
|
|
Admitted company
|
|
|
Non-admitted company
|
Detailed explanation-1: -How do admitted and non-admitted insurance companies differ? If an insurance company is admitted, it means they’ve met the regulations set by the state Department of Insurance (DOI) in the areas they work. In comparison, non-admitted insurance carriers have not met their state’s requirements.
Detailed explanation-2: -A non-admitted insurance company isn’t approved by the state, which means: The insurance company does not necessarily comply with state insurance regulations.
Detailed explanation-3: -Non-admitted assets are assets that have no value to fulfill policyholder obligations and cannot be easily converted to cash.
Detailed explanation-4: -The ceding company is the insurer that cedes all or part of the insurance or reinsurance it has written to a reinsurer.