Frequently Used Terms
|
| ADJUSTER |
| An independent contractor who for a fee
investigates and negotiates settlements of claims on behalf of insurers through
adjuster companies. Public adjusters typically represent customers and in
Alabama must be attorneys. |
| AGENCY |
| A business entity engaged in the insurance
business. |
| APPOINTMENT |
| Occurs whenever a company hires a particular
producer to sell insurance. |
| APPOINTMENT FEE |
| A fee paid by a company to authorize a producer
to act on its behalf in the state. |
| BUSINESS ENTITY |
| A group of people combined into or acting as one
body. |
| CANCELLATION OF APPOINTMENT |
| Occurs when a company or insurer terminates the
authority of a producer to act on its behalf. |
| CERTIFICATE OF COMPLETION |
| A certificate a producer receives whenever he or
she completes the 40-hour pre-licensing course. |
| COMPANY |
| A business enterprise, a firm or an insurance
company. |
| COURSE |
| An organized, outline body of information
intended to convey knowledge to the licensee (producer and service
representative). |
| COURSE OFFERING |
| The occurrence of a course being taught. |
| INSURER |
| An insurance company. |
| LETTER OF CERTIFICATION |
| A letter written or ordered by the Alabama
Department of Insurance verifying that a producer is licensed and in good
standing in Alabama. Fee - $5.00 per copy |
| LETTER OF CLEARANCE |
| A letter written by the Alabama Department of
Insurance canceling all current appointments and the license of a producer.
(Typically the producer is moving out of state) Fee - $5.00 per copy |
| LICENSEE |
| An individual who holds a license to sell
insurance. |
| LICENSING FEES |
| Money required to be paid for the privilege of
obtaining a license to sell insurance in this state. |
| MANAGING GENERAL AGENT |
| An individual, firm or business entity working
as an independent contractor for a company. |
| MULTIPLE APPOINTMENTS |
| Occurs when a producer is authorized to sell
insurance for more than one company or insured at the same time. |
| PRODUCER |
| An individual employed by a company, agency, or
business entity to sell insurance for a commission. |
| PRODUCER RENEWAL |
| Annual process and fees required to continue a
license. |
| SEND BACKS |
| A term used to define any application returned
to the sender because of a deficiency. |
| SERVICE REPRESENTATIVE |
| An individual employed with an insurance company
such as a secretary who is actively involved in selling insurance policies for
a salary instead of commissions. |
| SURPLUS LINES |
|
Risks or insureds who cannot get insurance through the licensed or admitted
market. May sell coverage in the surplus line market. Surplus line is also
called non-admitted or non-licensed insurance. |
| SUPPLEMENTAL RENEWAL INVOICE |
| After appointment renewals are finalized, this
is a bill sent to each insurer for those producers initially appointed during
the renewal period. It collects the fees for the next year to enable those
producers to continue to operate. |
