GK
INSURANCE AWARENESS
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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Pure Risk
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Proximate Clause
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Product Liability
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Non-admitted Insurer
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Detailed explanation-1: -Non-admitted carriers do business through wholesale brokers in states where they do not have insurance licenses. This means they aren’t required to follow the same state regulations as admitted carriers. It also means that if the insurance company fails, the state would not step in to make payments on claims.
Detailed explanation-2: -The Accounting Practices and Procedures Manuals for Property and Casualty and for Life and Accident and Health Insurance Companies define the term nonadmitted asset as an asset that has been “accorded limited or no value in statutory reporting”.
Detailed explanation-3: -Admitted reinsurance refers to reinsurance for which credit is given in the ceding company’s annual statement because the reinsurer is licensed or approved to transact business in the jurisdiction where the risk is located.