Insurers - ANSWER (Insurance Companies or Carriers) provide insurance coverage by issuing particular insurance policies or contracts Insurance Agencies - ANSWER Independent sales organizations that provide service and distribute insurance policies to consumers Insurance Agents or Producers - ANSWER are licensed individuals representing an insurance company when transacting insurance business Who primarily regulates the insurance industry? - ANSWER The insurance industry is regulated primarily at the state level through the legislative, judicial, and executive branches Legislative Branch - ANSWER Writes and passes state insurance laws or statues designed to protect the insuring public Judicial Branch - ANSWER responsible for interpreting and determining the constitutionality of the statues (interprets the law and makes sure it is constitutionally allowed) Executive Branch - ANSWER (executes/enforces the law) has the power to issue rules and regulations to help enforce statues NAIC - ANSWER National Association of Insurance Commissioners National Association of Insurance Commissioners (NAIC) - ANSWER Provides resources, research, legislative and regulatory recommendations and interpretations for state insurance regulators. Members may accept or reject recommendations. It has no legal authority to enact or enforce insurance laws. The primary goal of the association is to promote state uniformity. Stock Insurance Company - ANSWER Owned by its stockholders/shareholders who elect a Board of Directors to manage the company, the board then elects officers to handle day-to-day activities. Stockholders share in the company's profits and may receive corporate dividends taxable as ordinary income IF declared by the directors. (Dividends not guaranteed) Traditionally, this type of insurer issue non-participating policies, since the policyholders are not entitled to dividends Mutual Insurance Company - ANSWER Owned by policyholders/members who are considered the owners but do not directly manage the company. Board of directors