BROWSE

Unauthorized Insurer

What is 'Unauthorized Insurer'

A company that poses as an authorized provider of a financial protection plan. Unauthorized insurers are fraudulent operations that take advantage of consumers and sometimes even insurance agents to collect "premiums" on nonexistent policies. Victims lose their premium money and find themselves exposed to large potential losses that would have been protected by a legitimate insurance policy.

Explaining 'Unauthorized Insurer'

Sometimes even legitimate insurance agents can be duped by unauthorized insurers. When this happens, it puts the agent in a very bad situation. Even if the agent has unknowingly acted as a representative of the unauthorized insurer, he or she can be personally responsible for clients' outstanding claims, can be charged with committing a crime, can have his or her insurance license revoked and can be forced to pay a professional fine. Insurance agents can avoid such outcomes by checking with their state's department of insurance to find out if an insurer is licensed to sell the insurance product they are offering. Agents should take this step before selling their clients any policies from a particular insurer.


Further Reading


What is a Fair Price to Transfer the Risk of Unauthorized Trading?: A Case Study on Pricing Operational Risk
papers.ssrn.com [PDF]
… The FS model is predicated on the standard classical finance assumptions that firm's objective function is … What is a Fair Price to Transfer the Risk of Unauthorized Trading … charge for any expense loading, and incorporate a risk loading that compensates the insurer for absorbing …

E. Banks, The Palgrave Macmillan Dictionary of Finance, Investment and Banking© Erik Banks 2010E. Banks, The Palgrave Macmillan Dictionary of Finance, Investment and Banking© Erik Banks 2010
link.springer.com [PDF]
… The FS model is predicated on the standard classical finance assumptions that firm's objective function is … What is a Fair Price to Transfer the Risk of Unauthorized Trading … charge for any expense loading, and incorporate a risk loading that compensates the insurer for absorbing …

Risk of life insurers: Recent trends and transmission mechanismsRisk of life insurers: Recent trends and transmission mechanisms
www.nber.org [PDF]
… The FS model is predicated on the standard classical finance assumptions that firm's objective function is … What is a Fair Price to Transfer the Risk of Unauthorized Trading … charge for any expense loading, and incorporate a risk loading that compensates the insurer for absorbing …

The market value impact of operational loss events for US banks and insurersThe market value impact of operational loss events for US banks and insurers
www.sciencedirect.com [PDF]
… The FS model is predicated on the standard classical finance assumptions that firm's objective function is … What is a Fair Price to Transfer the Risk of Unauthorized Trading … charge for any expense loading, and incorporate a risk loading that compensates the insurer for absorbing …

Catastrophe risk financing in the United States and the European Union: A comparative analysis of alternative regulatory approachesCatastrophe risk financing in the United States and the European Union: A comparative analysis of alternative regulatory approaches
onlinelibrary.wiley.com [PDF]
… The FS model is predicated on the standard classical finance assumptions that firm's objective function is … What is a Fair Price to Transfer the Risk of Unauthorized Trading … charge for any expense loading, and incorporate a risk loading that compensates the insurer for absorbing …


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