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RMIN 4000 Test 2|Questions and Answers 100% Verified
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RMIN 4000 Test 2|Questions and Answers 100% Verified
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RMIN 4000 Test 2|Questions andAnswers 100% Verified
Health and Life Insurers - -These insurers sell life and health insurance
products, annuities, mutual funds, pension plans, and related financial
products.
- Property And Casualty Insurers - -The insurers sell property and casualty
insurance and related lines, including marine coverages and surety and
fidelity bonds.
- Stock Insurers
Mutual Insurers
Reciprocal exchanges
Lloyd's of London
Blue Cross and Blue Shield Plans
Other types of private insurers - -Insurers can be classified by their
organizational form:
- Stock Insurer - -is a corporation owned by stockholders
bear all losses
- earn profit for stockholders
Increase value of stock
Pay dividends - -Objective of Stock holders
- Mutual Insurer - -is a corporation owned by the policyowners
- Demutualization - -Means that a mutual insurer is converted into a stock
insurer
- Pure Conversion and Merger - -Two ways that a mutual company is
converted into a stock insurer
- Pure Conversion - -A mutual insurer amends its articles of incorporation
and is reorganized as a stock insurer
- Merger - -A mutual insurer and stock insurer are joined together as a
single company, and the stock insurer is the surviving company.
- Holding Company - -A company that directly or indirectly controls an
authorized insurer
, - Lloyd's of London - -Not an insurer, but a society of members who
underwrite insurance in syndicates
- Reciprocal Exchange - -An unincorporated mutual
Managed by an attorney-in-fact
Not personally liable for the payment of claims
- Blue Cross and Blue Shield Plans - -Generally organized as nonprofit,
community oriented plans.
Provides coverage for hospital services
Provides coverage for physicians' and surgeons' fees and other medical
services
- Captive Insurer - -An insurer owned by a parent firm for the purpose of
insuring the parent firm's loss exposures.
- Parent firm may have difficulty obtaining insurance
Favorable Regulatory environment
Costs may be lower than purchasing commercial insurance
Easier access to a reinsurer
Can become a source of profit - -Reasons why captives are created:
- Agent - -Someone who legally represents the principal and has the
authority to act on the principal's behalf
- All acts of an agent when the agent is acting within the scope of authority -
-The principal is responsible for....
- bind the insurer immediately - -Agents in Property and Casualty insurance
has the power to.....
- Binder - -Provides temporary insurance until the policy is actually written.
- Agents in Life and Health Insurance - -Normally doesn't have the authority
to bind the insurer.
- Broker - --Someone who legally represents the insured
-Solicits applications and attempts to place coverage with an appropriate
insurer
-Does not a have authority to bind the insurer
-Paid a commission from the insurers where the business is placed
- Agency Building System
Non building agency system
Direct response system - -Types of Life Insurance Marketing System:
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