BY THE INSURANCE DEPARTMENTS OF 2025

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An insurance policy is a legal contract between the insurance company (the insurer) and the person(s), business, or entity being insured (the insured). Reading your policy helps you verify that the policy meets your needs and that you understand your and the insurance companys responsibilities if a loss occurs.
An insured is a person or organization whose life, health , or property is covered by an insurance policy . The insureds loss results in the insurer s obligation to pay the proceeds of the insurance policy. By contrast, the insurer is the party in an insurance contract that promises to pay compensation .
Among its duties, the North Carolina Department of Insurance: Regulates the insurance industry. Handles insurance-related complaints. Licenses insurance agents, adjusters, bail bondsmen and more. Provides specialized counseling to people eligible for Medicare. Oversees motor clubs and collection agencies.
Insurance companies are generally organized in five broad departments: claims, finance, legal, marketing and underwriting. Marketing and underwriting are the yes departments, while claims and finance are the no departments. The legal department is often the referee between these competing interests.
A health insurance risk pool is a group of individuals whose medical costs are combined to calculate premiums.
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The major goals of insurance departments are to ensure fairness in rates and access to coverage, fairness and timeliness in claims handling, solvency of carriers, education of professionals, and to educate consumers. The insurance department must authorize an insurer before it can issue policies in any given state.
Insured. The policyholder - the person(s) protected in case of a loss or claim. Insurer.

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