CPCU 520 EXAM – 38 QUESTIONS AND
ANSWERS
Classification of Insureds - -Legal Form of Ownership
Place of Incorporation
Licensing Status
Insurance Distribution Systems and Channels
-Legal Form of Ownership - -Proprietary Insurerers
Cooperative Insurers
Other Insurers
-Place of Incorporation - -Domestic Insurer
Foreign Insurer
Alien Insurer
-Insurance Distribution Systems and Channels - -Independent agency and
brokerage marketing system
Direct writer marketing system
Exclusive agency marketing system
-Stock Insurer - -Owned by shareholder who elect a board of directors to
supervise operations. Dividends from equity investments of insureres are
returned to shareholders
-Mutual Insurer - -belong to PH who elect a board of directors. Benefits
besides those normally added onto the surplus returned to PH as dividends
-Lloyds of London - -meeting place of London insurers. Lloyd's is a
marketplace for hundres of u.w syndicates, each in effect a mini-inurer
-set standards for ites memebers, but does not deliver the policy itself.
-Each syndicate is managed by an u/w who decides which risk to accept.
Generally a risk underwritten at Lloyds is going to be shared by a lot of
syndicates
-Reciprocal Insurance Exchanges - -An unincorporated band of individuals
or ogranizations (subscribers) that consent to pool risks with the intention of
paying the cost of retained losses. Also referred to as inter-insurance
exchanges, they are managed by an attorney-in-fact. Subscribers have
contingent liability (several and proportionate) for paying off the losses of
the reciprocal.
The benefits of buying summaries with Stuvia:
Guaranteed quality through customer reviews
Stuvia customers have reviewed more than 700,000 summaries. This how you know that you are buying the best documents.
Quick and easy check-out
You can quickly pay through credit card or Stuvia-credit for the summaries. There is no membership needed.
Focus on what matters
Your fellow students write the study notes themselves, which is why the documents are always reliable and up-to-date. This ensures you quickly get to the core!
Frequently asked questions
What do I get when I buy this document?
You get a PDF, available immediately after your purchase. The purchased document is accessible anytime, anywhere and indefinitely through your profile.
Satisfaction guarantee: how does it work?
Our satisfaction guarantee ensures that you always find a study document that suits you well. You fill out a form, and our customer service team takes care of the rest.
Who am I buying these notes from?
Stuvia is a marketplace, so you are not buying this document from us, but from seller Victorious23. Stuvia facilitates payment to the seller.
Will I be stuck with a subscription?
No, you only buy these notes for $8.49. You're not tied to anything after your purchase.