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RMIN 4000 Edmunds Exam 2 With Complete Solutions Latest Update
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RMIN 4000 Edmunds Exam 2 With Complete Solutions Latest Update
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RMIN 4000 Edmunds Exam 2 With CompleteSolutions Latest Update
major types of private insurers - correct answers Stock, Mutual, and Lloyd's of London
stock insurers - correct answers corporation owned by stockholders.
objective is to earn profit for stockholders by increasing the value of the stock and paying dividends
Mutual insurers - correct answers a corporation owned by policyholders. profits are distributed to policyholders by
dividends or rate reductions
types of mutual insurers - correct answers advance premium mutual, assessment mutual, and fraternal insurer
assessment mutual - correct answers insurer has the right to assess policyholders an additional amount if the insurer's
financial operations are unfavorable
advance premium mutual - correct answers insurer does not issue assessable policies
fraternal insurer - correct answers a mutual insurer that provides life and health insurance to members of a social or
religious organization
Lloyd's of London - correct answers The world's leading insurance market that provides services and physical facilities for
its members to write specialized lines of insurance. They underwrite insurance for syndicates.
Is Lloyd's of London an insurer? - correct answers No
Lloyd's of London brokers - correct answers represent policyholders to arrange coverage with syndicates
syndicates - correct answers offer insurance contracts in the market
, who makes up a syndicate? - correct answers members, managing agents, and underwriters
insurance agent - correct answers Someone who legally represents the principal (insurance company) and has the
authority to act on the principal's behalf
Is the principal responsible for acts of an agent? - correct answers Yes, when the agent is acting within the scope of
authority
Agent Binding Authority - correct answers provide temporary insurance until the policy is actually written (typically with
P&C, NOT life
brokers - correct answers someone who legally represents the insured, places appropriate coverage, is paid commission
from insurer, and
importance of large brokerage firms - correct answers very important for commercial P&C, have knowledge of
specialized markets, and provide risk management and loss-control services
surplus lines broker - correct answers "Wholesalers" who work with retail Agents and Brokers, licensed to place business
with a "non admitted" insurer
surplus lines - correct answers any type of insurance for which there is no available market in the state
non-admitted insurer - correct answers an insurer not licensed to do business in the state
independent agency distribution - correct answers represent several unrelated insurers, agency owns expirations and
renewal rights
exclusive agency system - correct answers the agent represents only one insurer or group of insurers under common
ownership. agents do not own expirations or renewal rights to policies
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