stock company
Owned by investors. Policyholders and owners are different. Profits go to shareholders and are taxed.
Mutual Company
Owned by the policyholders. Profits may be returned to them as dividends (not taxed). Dividends are not guaranteed.
Participating Policy
May pay dividends (usually from mutual companies).
Fraternal Benefit Society
Nonprofit groups (like religious or ethnic clubs) that sell insurance only to members. Rare and mostly used for life insurance.
Risk Retention Group
A group formed by businesses in the same field to insure each other when regular insurance is too expensive.
Lloyd’s of London
not an insurance company, but a global marketplace where investors insure unique or high-risk things.
domestic insurer
an insurer doing business in the same state where it is incorporated.
foreign insurer
is an insurance company from another state.
alien insurer
an insurance company from another country.
Admitted carriers
include domestic, foreign, and alien insurers with official permission to sell in a given state.
non‑admitted carriers
Insurers not licensed in the buyer’s state, operating in the excess-and‑surplus (E&S) market to offer coverage when standard insurance is unavailable.
Why might someone use a non‑admitted insurer?
Because standard (admitted) insurers denied coverage, and they need access to unique or high-risk insurance options.
What are some risks or limitations of using non‑admitted carriers?
They may offer fewer consumer protections, and policy terms may differ significantly from standard insurance.
Government insurers
cover things private companies usually avoid, like flood damage or Medicare/Medicaid for health.
In what lines of insurance is the excess-and‑surplus market most commonly used?
Property and casualty insurance—rarely used for life or health insurance.
residual market
helps people or businesses get insurance after being denied by private companies.
FAIR plan
helps insure high-risk properties by pooling state insurers with federal support for major losses.
Who can be denied coverage under a FAIR plan?
Properties that are vacant, unsafe, poorly maintained, store hazardous materials, or show signs of fraud or negligence.
reinsurance
Insurance that insurance companies buy to protect themselves from big losses or to offer larger coverage.
What are the two types of reinsurance agreements?
Facultative (case-by-case) and Treaty (covers many policies automatically from one source).
Who provides reinsurance?
Mostly private insurers, but sometimes the government
How does reinsurance affect consumers?
If insurers can’t get it, premiums may go up, rules may tighten, and people may lose or be denied coverage.
What is Treaty Reinsurance?
An ongoing agreement that automatically covers multiple policies without needing individual approval.
insurance producer
licensed person (like an agent or broker) who sells insurance and helps manage policies.
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Level 1 Chapter 129
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Level 1 chapter 236
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Level 1 chapter 351
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Level 1 chapter 442
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Level 2 chapter 120
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Level 2 chapter 229
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Level 2 chapter 360
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Level 3 chapter 116
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Level 3 chapter 278
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Level 3 chapter 336
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Level 4 Chapter 134
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Level 4 chapter 2 Business Interruption Insurance38
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Level 4 Chapter 3 Marine Insurance19
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Level 4 chapter 4 Assorted Commercial Property Products56
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Level 5 Chapter 1 Personal Lines Casualty Insurance103
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Level 5 chapter 2 Assorted Personal Lines Casualty Products17
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Level 6 Chapter 1 Commercial Lines Casualty Insurance90
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Level 6 Chapter 2 Commercial General Liability Insurance48
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Level 6 chapter 3 Employment Practices Liability Insurance29
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Level 6 chapter 4 Workers' Compensation and Employers' Liability Insurance66
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Level 6 chapter 5 Professional Liability/Errors and Omissions Insurance35
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Level 6 Chapter 6 Cyber Insurance36
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Level 6 Chapter 7 Miscellaneous Casualty Insurance Products45
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Level 7 chapter 1 Texas Laws and Rules107
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Level 7 Chapter 2 Texas Laws and Rules (Property and Casualty)101
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Missed information32
