Key Concepts in Insurance

Introduction and Terminology

• Instructor: Celine, 36 years with Primerica
• Company: Primerica is the insurer
• Key Terms:
  • Insurer: Company selling insurance
  • Insured: Person protected by insurance
  • Policy Owner: Has all rights to the policy
  • Applicant: Person completing the application
  • Beneficiary: Receives face value of policy upon insured's death

Types of Insurers

• Certificate of Authority: License to do business in a state
• Admitted/Authorized Insurer: Approved to conduct business
• Non-Admitted/Unauthorized Insurer: Not approved to conduct business
• Mutual Insurer: Owned by policy owners, pays dividends
• Stock Insurer: Owned by shareholders, issues non-participating policies
• Fraternal: Non-profit, member-based organizations
• Domestic Insurer: Operates in state where incorporated
• Foreign Insurer: Operates in other states than where incorporated
• Alien Insurer: Operates in other countries

Insurance Professionals

• Producer/Agent: Sells insurance and has a contract with the company
• Fiduciary: Person in trust position, often associated with