AINS Practice Exam Review With 100% Correct Answers

AINS Practice Exam Review With 100% Correct Answers One distinguishing feature between independent agency systems and other marketing systems is the... - answeragency expiration list Foreign Insurer - answerAn insurer licensed to operate in a state but incorporated in another state Domestic Insurer - answerAn insurer doing business in the jurisdiction in which it was incorporated Alien Insurer - answerAn insurer domiciled in a country other than the US Direct Response Marketing System - answerGreatly reduces compensation costs but has higher advertising costs Agency Expiration List - answerAn agency's most valuable asset (does not belong to insurer) Important consideration when selecting distribution channels - answerDoes the channel capitalize on its core capabilities? Knowledge acquired by the agent is presumed to be.. - answerknowledge acquired by the insurer Premium collection method used for personal insurance and small commercial accounts - answerDirect Bill What specifies scope of authority of an agent? - answerAgency contract Agency Bill - answerPayment procedure in which a producer sends premium bills to the insured, collects the premium, and sends the premium to the insurer, less any commission Item Basis - answerPremium (less commission) is forwarded to the insurer when the producer collects it or when it comes due. Least complex method Statement Basis - answerInsurer sends statement to the producer showing the premiums due. Producer is obligated to pay the premiums as due. Account Current Basis - answerProducer periodically prepares a statement showing the premiums due to the insurer, after deducting appropriate commissions, and transmits the amount to the insurer. The agency contract will indicate ho