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RMIN 4000 Exam 2 - UGA Daniel Brown Study Guide Solutions Updated 2024

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RMIN 4000 Exam 2 - UGA Daniel Brown Study Guide Solutions Updated 2024 Private insurance industry - ANSWER-US insurance industry employed 2.9m - closer to 3m now Insurers paid over $20 billion in premium taxes Major types of private insurers - ANSWER-Stock insurers Mutual insurers Mutual Insu...

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  • November 11, 2024
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RMIN 4000 Exam 2 - UGA Daniel Brown

Study Guide Solutions Updated 2024


Private insurance industry - ANSWER✔✔-US insurance industry employed 2.9m - closer to 3m now




Insurers paid over $20 billion in premium taxes


Major types of private insurers - ANSWER✔✔-Stock insurers


Mutual insurers


Mutual Insurers - ANSWER✔✔-Owned by policyholders




Profits are distributed to policyholders through dividends or rate reductions


Types of mutual insurers - ANSWER✔✔-Assessment mutual


Advance premium mutual


Fraternal insurer


Assessment mutual - ANSWER✔✔-insurer has right to assess policyholders an additional amount if the

insurer's financial operations are unfavorable


Advance premium mutual - ANSWER✔✔-insurer does not issue assessable policies




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*Do not have right to assess their policyholders (most ins companies today)


Fraternal insurer - ANSWER✔✔-provides life and health insurance to members of a social or religious

organization


Lloyd's (of London) - ANSWER✔✔-World's leading market that provides services and physical facilities for

its members to write specialized lines of insurance - marketplace of insurance




Not an insurer


What kinds of insurance does Lloyd's offer? - ANSWER✔✔-casualty


property


marine


energy


motor


aviation


reinsurance




MEMPCAR


Lloyd's structure - ANSWER✔✔-Lloyd's brokers


Lloyd's syndicates


Lloyd's brokers - ANSWER✔✔-represent policyholders to arrange coverage with syndicates


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Lloyd's syndicates - ANSWER✔✔-offer insurance contracts in the market




See celebrities and athletes insuring various body parts


Lloyd's Syndicates - Members - ANSWER✔✔-Join together and provide capital to form syndicates,

receiving profits or bearing losses




Most are corporation or limited partnerships




"Names" are high net worth individuals


Lloyd's Syndicates - Managing Agents - ANSWER✔✔-manage the syndicates, typically specialize in certain

lines


Lloyd's Syndicates - Underwriters - ANSWER✔✔-work for the syndicates to assess risks and determine

premiums




*Must meet Lloyd's stringent capital requirements


Stock insurer - ANSWER✔✔-A corporation owned by stockholders




Objective is to earn profit for stockholders by increasing the value of the stock and paying dividends




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