Meridian Global Logistics, a company headquartered in Ohio, purchases specialized commercial property insurance through a surplus lines broker. The policy is issued by 'Atlas Mutual', an insurance entity incorporated in London, England, that does not hold a Certificate of Authority in Ohio. To manage its financial exposure, Atlas Mutual transfers a portion of Meridian's risk to 'Global Re'. Based on the structural classifications of insurers and these operational arrangements, which of the following statements are correct? (Select all that apply.)
- Atlas Mutual is classified as both an alien insurer, due to its incorporation outside the U.S., and a non-admitted insurer in Ohio.Cevap
- As a mutual insurance company, Atlas Mutual is owned by its policyholders, who elect the board of directors and may receive non-taxable policy dividends.Cevap
- CBecause it operates as a mutual insurer, Atlas Mutual is owned by private shareholders who expect a return on their investment through taxable corporate dividends.
- DBy accepting a portion of the risk from the primary policy, Global Re acts as the ceding insurer and assumes direct legal liability to Meridian Global Logistics for any future claims.
Cevap
The correct statements are that Atlas Mutual is classified as an alien and non-admitted insurer, and that as a mutual insurer, it is owned by its policyholders.
The correct statements accurately reflect that an insurer incorporated outside the United States is classified as an alien insurer, and one operating without a state's Certificate of Authority is considered non-admitted. Additionally, the statements correctly identify that mutual insurers are structurally owned by their policyholders.
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Anahtar Kavram
Classification of Insurers: Domicile, Authorization, Ownership, and Reinsurance Roles