I honestly can't believe anyone actually read that last chapter. In an attempt to make this easier to remember and fun for you (since I seem to have readers), I've decided to throw all the rules out the window. Anything goes. Any fandom or person can infiltrate this story. Watch what happens as this fic becomes the written equivalent of an improv sketch! Hope you enjoy it!

Insurers

When Big Hero 6 returned to Fred's room, Baymax stepped off his charger to continue their lesson on insurance. Wasabi got out his notebook and Fred leaned forward with anticipation.

"Welcome back everyone!" Baymax said cheerfully. "Are you sitting comfortably?"

"I hope so." Gogo rolled her eyes. "Because then I can sleep through this lesson."

Baymax apparently chose to ignore her statement. "The next lesson is on the Types of Insurers. Insurers are classified by how they operate and are organized."

"I bet there are a lot of them." Wasabi spoke up.

"Great. More to learn." Hiro muttered.

"There are a variety of types of insurers. The first is a Stock Company, which is owned by stockholders." Baymax said. "Can anyone tell me what a Stock Company is."

"A company owned by stockholders." Gogo shouted out.

"Correct. But I already said that. Stock Insurance companies are owned by stockholders to whom earnings are distributed as taxable dividends on their shares or reinvested by the company. A Board of Directors is elected by the stockholders to manage the company." Baymax recited.

"So stockholders earn money based on their shares of the company?" asked Honey. "And stockholders elect a board of directors to manage it?"

"That is a simplified way of putting it." Baymax nodded. "The next company is a Mutual (Participating) Company. It is owned by policyholders. The earnings of the company are over and above the payments of claims, operating expenses, and reserves that belong to the policyholders."

"In English please?" Gogo interrupted.

"Mutual Companies make more money than needed so they can afford to give back to the policyholders. A Board of Trustees manages the company." Baymax explained. "Fraternal Benefit Societies are Life or Health insurance carriers; they exist as social nonprofit organizations and voluntarily provide insurance only for their members. Examples are affiliated lodges, religious organizations, or Fraternal organizations with a representative form of government. They are considered charitable institutions and are not subject to all of the regulations that apply to insurers who offer insurance to the general public."

"So you have to be a part of those organizations to receive benefits?" Hiro asked.

There was a knock at the door and suddenly, in walked Tadashi. Everyone gaped at him.

"I know what you're thinking." he said, holding his hands out in a placating gesture. "But rather like your last example, being in a fanfiction, especially a self aware one written by a desperate 20-something who hasn't taken a test in 4 years and really needs to know this stuff in the next 2 weeks, means you get benefits like having your death erased from canon because she likes you as a character."

"Wait so you never died to begin with?" Hiro gaped. "Then why were you dead until today?"

Tadashi shrugged. "Plot holes are inconsequential in stories like this. The point is that being part of her group of favorite characters provided me benefits like being brought back to life with no adequate explanation and for no apparent reason."

"So being in a fanfiction written by a madwoman is like being part of a Fraternal Benefit Society because she provides benefits from being a character in something she likes?" Hiro asked. "Cool! It was sad that you died an unspecified amount of time ago but now you're not dead and because it would take too long for me to have a realistic emotional reaction, I'm just going to accept your coming back to life without question!"

"Being an awesome character has its benefits, like thousands of girls all over the world throwing themselves at me on tumblr." Tadashi said as he sat down. "Now I know you all can learn this. I'm not giving up on you. And I'm not giving up on you, readers, even though this story has headed into completely ridiculous and improbable territory."

"That's the spirit." Fred gave Tadashi a high five. "But in the aforementioned term, that would be insurance, not randomly coming back to life."

"Correct." Baymax handed Fred a lollipop. "The next type is a Reciprocal Insurer. Reciprocal insurers can either be unincorporated groups of individuals, firms, or corporations, commonly termed Subscribers, Reciprocal Insurance Company, or Exchange. They mutually insure one another, assuming their share of each risk. Its chief administrator is an attorney in fact who manages and operates the risk sharing agreement."

"So basically different and unincorporated groups groups all insure one another to assume more shares of each risk?" Fred asked. "That would be like us suddenly and inexplicably sharing insurance with the people from Berk even though we're mortal fandom enemies?"

"Essentially true." Baymax said. "Reciprocal Insurers insure each other even though they are unaffiliated and an attorney in fact, in this case Katie, the story writer, because she's the evil overlord who has our fate in her hands, would manage and operate the risk sharing agreement between San Fransokyo and Berk."

"All hail Katie, our evil overlord." they all said in unison.

"The next type of insurer is a Lloyd's Association (Lloyd's of London). Lloyd's is a group of individual underwriters that accept or reject risks offered to them. The underwriters ingest money in risks that cannot get insurance in the normal market." Baymax continued. "These organizations are voluntarily unincorporated associations of individuals that support underwriters that accept insurance risk. Each individual assumes a specified portion or the liability under each policy issued."

"So imagine you're scrolling through a fanfiction page." Tadashi explained. "And you run across tons of stories. It is up to you to accept or reject the emotional risk of each fanfiction you come across. That would make you like a Lloyd's Association, only instead of fanfiction, they're accepting or rejecting insurance coverage based on risk."

"That is a good example." Baymax said. "Lloyd's Associations are not Insurance Companies and many states prohibit them from forming."

"So it's like saying most of these sites do not have canon material and many fandoms are prohibited by the author of the original material to write fanfiction on them?" Fred asked.

"That's a similar concept. They operate mostly on the property insurance field and provide a meeting facility for underwriters." Baymax finished. "Risk Retention Groups are liability insurance companies that are not regulated by the state. Membership is limited to people in the same business or activity which exposes them to similar liability risks. The purpose is to assume and spread the liability exposure to the group members and to provide an alternative risk financing mechanism for their liability."

"So like a group of superheroes." Wasabi spoke up. "We all have similar risks because we're in the same business or activity so we spread liability exposure among our group."

"Exactly. Have a lollipop." Baymax handed a yellow lollipop to him. "Self-Insurering is when an insurance company develops a formal program identifying, evaluating, and funding its losses. It is a means of retaining risk."

"So that means preventing them from paying out more than they have?" Honey asked.

"Yes. Self insurers buy insurance to cover losses beyond a set limit, which is stop loss coverage. It gives them additional insurance beyond what their plan accepts. For a risk to be truly self-insured, two characteristics must exist: a large number of homogeneous exposure units must be present, so the Law of Large Numbers can be used to predict losses and rates. Also there must be sufficient liquid assets to pay claims and other costs of retaining a risk. Basically, it must be statistically predictable and there must be money to cover the additional costs."

"Are you sure that's right?" Honey asked. "Because that sounds confusing and contradictory."

"Katie, our overlord, is a bit confused about this term." Baymax told her. "She is looking this term up online so she can figure out what it means. It appears to mean that a calculated amount of money is set aside to compensate for a potential future loss. The Law of Large Numbers helps to predict how much money must be set aside. Self-insurance apparently also means replacing insurance with your own funds and proving that you can do so because that money is already set aside, though there seems to be only information available for business owners so whether or not anyone can do this is uncertain The definitions of this term vary so perhaps someone can clarify it at a later time."

"Okay then." Wasabi raised an eyebrow at the long list of notes he had taken.

"Surplus Lines refers to coverage that must be purchased from an unauthorized company because it is not available through a licensed company. It most often involves insurance in the high risk market."

"Sounds like people who are part of Adverse Selection may need that because it insures them for their higher risks." Wasabi said.

"This is true. Good job remembering an earlier term." Baymax handed him another lollipop. "Purchasing Groups are entities that buy insurance for groups with related businesses and similar exposures to risk. Purchasing companies are exempt from most State laws or regulation outside the state where they are incorporated and they can only write Liability Insurance, not Workers Compensation or personal lines of insurance. The group's members belong to businesses with the same type of liability."

"So that means that a Purchasing Group buys insurance for similar businesses?" Tadashi asked.

"Yes. Have a lollipop."

"I really should have stocked you with a different kind of candy." Tadashi said as he accepted the treat. "We're going to get tired of these soon enough."

"Government plans refer to plans paid by taxpayers like Medicare, Medicaid, and Social Security. The primary difference between Government and private insurers is that the Government insurers are tax funded and serve National and State social needs an private insurers transact insurance by State Insurance Departments."

"So basically taxpayers pay for Government insurance but not private insurance." Hiro clarified. "Oh joy."

"As all of you and our overlord knows these coming terms, I will skim over them. Domestic insurer is like Maryland, Foreign is any other state in the country and DC, and Alien is another country." Baymax simplified these terms because the author already knows them. "An insurance company's financial integrity, strength, and stability are highly important factors to potential and current people insured. This is determined by prior claims experience, investment earnings, level of reserves, and management."

"Okay. I'm sensing that our overlord already knows that too." Tadashi said. "Because I suddenly understand it."

"It's weird what she remembers and what she doesn't." Gogo grumbled.

"Here is how insurance is sold: the Agency Method is when independent insurance agents sell the products of several companies and are appointed on a non-exclusive basis. In an Independent Agency Method, an agent earns commissions on personal sales, overrides of other agents, and owns the expirations of the policies she sells."

"So like if I joined a few other superhero teams and fought for them and earned all my commissions off of all of the hero work I did, that would be like the Independent Agency Method because I'd work for a bunch of teams but be my own agent." Fred clarified.

"Exactly."

"Great because I have this weird yet strong urge to find my long lost twin sister, grow my hair out, and ride a two headed dragon." Fred added.

"You have a long lost twin sister?" asked Gogo.

"No. And yet I do. And yet I don't. I'm really confused. It's like there's a part of me that does. And yet a part of me that doesn't. How freaky is that?"

"I don't even want to know." Gogo mumbled. "Forget I asked."

"Exclusive or Captive Agents represent only one insurance company and is appointed on an exclusive or captive basis. They are compensated on the same things as Independent Agents but do not own the expirations of the renewal business and all business is placed with an insurer."

"So like us only working for Big Hero 6 and none of us riding dragons." Tadashi raised an eyebrow at Fred, who shrugged.

"Wouldn't we be Big Hero 7 now?" Hiro asked.

"Oh yeah. I guess so." Tadashi shrugged. "Cool."

"The Managing General Agent is an exclusive agent who hires and trains other producers or agents in a specified geographic area. They are compensated for their commissions and also from commissions of the people they train, as well as advertising, office expenses, and staffing."

"So like a manager of the agents." Honey said.

"Yes. Mass Marketing means systems like direct-response, vending machines at airports, and franchises." Baymax did his best to shrug. "This is how they sell insurance. A Direct Response Marketing System is when the producer or agent is bypassed and an insurer directly contacts the public. The use of mail, TV, internet, telephone solicitation, and any type of telemarketing are examples."

"So Direct Response is directly contacting the public with the resources on hand?" asked Tadashi.

"Correct. Franchise Marketing provides coverage to employees of small firms that do not qualify as a true group. Employees receive individual policies, not a master policy. Premiums charged are generally less than an individual policy but more than group coverage." Baymax went on. "This is insurance for people whose groups are too small to be a "true group" so they receive individual policies instead of one bigger policy for everyone."

"Okay, that makes sense." Honey nodded.

"Unfair and misleading marketing practices lead to class action lawsuits against insurance companies." Baymax explained. "Remember to follow the Code of Ethics and the Golden Rule for the sake of your and everyone else's mental health."

"Hear hear!" everyone cheered.

"The Life and Health Guaranty Association is a private, nonprofit, non-stock corporation. Policyholders, insured, beneficiaries, assignees, and annuitants of Health and Life Insurance policies, annuities, and supplemental contracts are protected by the Life and Health Insurance Guaranty Corporation." Baymax continued. "If the insurance company issuing a policy fails to perform its contractual obligation because it becomes impaired, its policyholders are protected. A 30 day notice is necessary before payment of an assessment is due. Participation is mandatory for all insurance companies that sell insurance. The association is funded by its authorized members and the funds they contribute pay benefits for insurers that become insolvent."

"Umm... English?" piped up Hiro.

"Katie is confused and can find no adequate explanation of it online." Baymax put up his hands in surrender. "Hopefully she knows enough to answer a related question on the exam. Moving on, prior to an insurance company conducting business, it must, by law, have a Certificate of Authority. This means that insurance companies must obtain a license from the Department of Insurance to be admitted or approved. If a company has been denied a Certificate of Authority or has not applied for it, they may not transact insurance business in the state and are known as a non-admitted or a non-approved insurer."

"So if you don't have that certificate, you can't be an insurer." Wasabi clarified.

"Yes." Baymax replied. "This concludes your second lesson. More is coming!"

That was a pain to write. I've decided to revert to script format for the remainder of the fic. Why? Because it's faster to write and I have to churn these out as fast as I can. I'm only writing in 5 of the 12 chapters because those have the most questions attached. This section has only 8 questions and I think I know enough to answer them. Hopefully.

Hope you liked it. Can't believe I have readers.

~KateMarie999