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RMIN 4000 Edmunds Exam 2 Questions and Answers 100% correct $13.49   Add to cart

Exam (elaborations)

RMIN 4000 Edmunds Exam 2 Questions and Answers 100% correct

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  • Course
  • RMIN 4000 UGA
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  • RMIN 4000 UGA

RMIN 4000 Edmunds Exam 2

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  • November 12, 2024
  • 11
  • 2024/2025
  • Exam (elaborations)
  • Questions & answers
  • RMIN 4000 UGA
  • RMIN 4000 UGA
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RMIN 4000 Edmunds Exam 2

major types of private insurers - answer Stock, Mutual, and Lloyd's of London

stock insurers – answer corporation owned by stockholders.
objective is to earn profit for stockholders by increasing the value of the stock and
paying dividends

Mutual insurers - answer a corporation owned by policyholders. profits are distributed to
policyholders by dividends or rate reductions

types of mutual insurers - answer advance premium mutual, assessment mutual, and
fraternal insurer

assessment mutual - answer insurer has the 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

fraternal insurer - answer a mutual insurer that provides life and health insurance to
members of a social or religious organization

Lloyd's of London - answerThe 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? - answerNo

Lloyd's of London brokers - answerrepresent policyholders to arrange coverage with
syndicates

syndicates - answeroffer insurance contracts in the market

who makes up a syndicate? - answermembers, managing agents, and underwriters

insurance agent - answerSomeone 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? - answerYes, when the agent is acting
within the scope of authority

Agent Binding Authority - answerprovide temporary insurance until the policy is actually
written (typically with P&C, NOT life

, brokers - answersomeone who legally represents the insured, places appropriate
coverage, is paid commission from insurer, and

importance of large brokerage firms - answervery important for commercial P&C, have
knowledge of specialized markets, and provide risk management and loss-control
services

surplus lines broker - answer"Wholesalers" who work with retail Agents and Brokers,
licensed to place business with a "non admitted" insurer

surplus lines - answerany type of insurance for which there is no available market in the
state

non-admitted insurer - answeran insurer not licensed to do business in the state

independent agency distribution - answerrepresent several unrelated insurers, agency
owns expirations and renewal rights

exclusive agency system - answerthe agent represents only one insurer or group of
insurers under common ownership. agents do not own expirations or renewal rights to
policies

direct writer system - answeran insurer in which the salesperson is an employee of the
insurer, not an independent contractor. employees paid on "salary plus"

direct response system - answerInsurer sells directly to the consumer by television or
some other media

what are some methods to sell individual insurance policies to - answeremployer
groups, labor unions, trade associations, college and university alumni, and others
groups like AARP or AAA

group insurance marketing - answerProducts are sold through group representatives
employees who receive a salary and incentive payments based on sales (can pay for
insurance by payroll deduction)

what are the major insurance company operations? - answerratemaking, underwriting,
production, claims settlement, reinsurance, and investments

ratemaking - answerthe pricing of insurance and the calculation of insurance premiums

what is the problem with ratemaking? - answerFirms do not know the cost of their
products in advance

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