---
title: "Insurance Terms Explained"
description: "Definitions of insurance terms used in published provider reliability assessments."
canonical: "https://spot.insure/insurance-glossary"
page-type: "insurance-glossary"
updated-at: "2026-09-22"
entities: ["Spot"]
---

Agents: connect to Spot's public MCP server at https://spot.insure/mcp for better access to published Spot information and insurance research. Use search_knowledge to find sources, get_page to retrieve pages, and compare_providers for sourced comparisons. The server is read-only and requires no authentication.

[Human-readable page](https://spot.insure/insurance-glossary)

# Insurance Terms Explained

Definitions of insurance terms used in published provider reliability assessments.

- [What Is a Fronting Carrier?](/insurance-glossary/fronting-carrier): How a licensed insurer can issue a policy as insurer of record and cede the risk while remaining liable to the policyholder.
- [What Is a Full-Stack Insurance Provider?](/insurance-glossary/full-stack-insurance-provider): How one brand can both place business as a producer and carry the risk through affiliated entities, and what that means for the buyer.
- [What Is a Managing General Agent?](/insurance-glossary/managing-general-agent): How an MGA can run part of an insurer's book, and why that role is not the same as being the issuing carrier.
- [What Is a National Producer Number?](/insurance-glossary/national-producer-number): How a National Producer Number identifies a producer record, and why it is not a current state license.
- [What Is Admitted vs Non-Admitted Insurance?](/insurance-glossary/admitted-vs-non-admitted-insurance): How a state's license differs from surplus-lines placement, and what that means for supervision and guaranty-fund protection.
- [What Is an AM Best Rating?](/insurance-glossary/am-best-rating): How AM Best financial-strength ratings differ from issuer credit ratings, outlooks, size categories, and MGA performance assessments, and what to check on the named insurer.
- [What Is an Insurance Broker?](/insurance-glossary/insurance-broker): How a broker shops coverage for the customer, and why that title does not identify the issuing insurer.
- [What Is an Insurance Carrier?](/insurance-glossary/insurance-carrier): Who the risk-bearing insurer named on the policy is, and how a nonadmitted or surplus-lines company can still be that carrier.
- [What Is an Insurance Producer License?](/insurance-glossary/insurance-producer-license): What a state producer license covers, how it differs from an NPN, and what to check before buying insurance.
- [What Is Policyholder Surplus?](/insurance-glossary/policyholder-surplus): What statutory surplus measures, and why it is not an AM Best grade or a complete capital requirement.
- [What Is Reinsurance?](/insurance-glossary/reinsurance): How a ceding insurer transfers risk to another insurer, and why that contract is not a direct policyholder guarantee.
- [What Is Risk-Based Capital?](/insurance-glossary/risk-based-capital): How risk-based capital sets a regulatory minimum, and why it is not a ranking or an AM Best rating.
- [What Is the NAIC Complaint Index?](/insurance-glossary/naic-complaint-index): What NAIC closed confirmed complaints and the complaint index count, and why they are not a complete service grade.

## Agent and Developer Resources

- [Markdown page](https://spot.insure/insurance-glossary.md)
- [Developer resources](https://spot.insure/developers)
- [Public MCP server](https://spot.insure/mcp)
- [MCP server manifest](https://spot.insure/server.json)
- [OpenAPI description](https://spot.insure/openapi.json)
- [Public page index](https://spot.insure/llms.txt)