Term
| The National Assoc. of Insurance Commissioners |
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Definition
membership organization made up of the commissioners directors or superintendents of insurance who are chiefly responsible for regulating insurance in the 50 states of the US and in the Distict of Columbia. * enhancement and standarization of regulation at the state level through it model laws and regulations. |
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| draft statute created by the NAIC to deal w/a particular insurance issue or subject. recommended by the NAIC but can be rejected, accepted, ignored or modified by the states. |
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| draft of an administrative rule or regulation created by the NAIC to address a particular insurance issue or subject. |
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| an insurer transacting business in its home state or the state where it has its home office. |
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| an insurer domicilied in a state of the US other than the state in which it's operating. |
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an insurance company that is not headquartered in the US but is doing business in the US. |
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| state laws that permit insurance to be written by "acceptable" nonadmitted insurers when such coverage is unavailable from admitted insurers. |
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| state-established funds that pay the unpaid claims of an insolvent licensed insurer. usually operate on an assessment basis. |
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| repetitive pattern of insurance pricing. a hard market (high rates, restrictive uw standards and uw gains) is followed by a soft market (low rates, relaxed uw and uw losses). |
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| state law which rates are determined by a state agency or a rating bureau and under this law, all licensed insurers must use these rates. |
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| requires rates to be approved by the state insurance department before being used by the insurer |
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| an insurance company must file first w/state insurance dept before the rates can be used. |
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| rate changes can be used beofre they are filed w/state insurance regulatory authority. |
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| state law which prior approval of a set of proposed new insurance rates must be obtained form the state regulatory authority only if the proposed rates deviate from the existing filed rates by at least a specified percentage. |
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| market forces determine insurance rates rather than regulatory authorities. may require insurers to file statistical data with the state in support of their rates. state reserves right to disapprove rates if necessary. |
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| unfair trade practices act |
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| those state laws that specify which activities of a licensed insurance agent that will be deemed to constitute an unfair trade practice. |
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| practice of giving back a portion of an agent's commission or some other financial reward to an insured as an incentive for himor her to purchase a policy. |
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insurance advisory organizations |
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| provide services to their member insurers. considered unofficial regulators as thier activities substantially influence the insurance market. |
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