RMI-4292 Chapter 1: Property Ch1 Textbook
11 Feb 2019
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Classifications of insureds: principal function of every insurer the acceptance of risks that others transfer to it through the insurance mechanism, legal form of ownership, proprietary insurers. Insurers and other organizations that make insurance available through a shared risk mechanism to those who cannot obtain coverage in the admitted market: places of incorporation, domestic insurer. Incorporated within a specific state or, if not incorporated, is formed under the laws of that state: foreign insurer, a domestic insurer that is licensed to do business in states other than its domiciled state, alien insurer. Incorporated or formed in another country: licensing status, a license indicates that the insurer has met the state"s minimum standards for financial strength, competence, and integrity. Independent agency and brokerage marketing system: direct writer marketing system, an insurance marketing system that uses sales agents who are direct employees of the insurer, exclusive agency marketing system. Comply with legal requirements: diversify risk, fulfill their duty to society.
