Exam (elaborations)
RMIN 4000 Test 2|Questions and Answers 100% Verified
- Course
- Institution
RMIN 4000 Test 2|Questions and Answers 100% Verified
[Show more]
Content preview
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:
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 Nursephil2023. Stuvia facilitates payment to the seller.
Will I be stuck with a subscription?
No, you only buy these notes for $12.49. You're not tied to anything after your purchase.
Can Stuvia be trusted?
4.6 stars on Google & Trustpilot (+1000 reviews)
67096 documents were sold in the last 30 days
Founded in 2010, the go-to place to buy study notes for 14 years now