AINS Practice Exam Review || with 100% Errorless Solutions.

One distinguishing feature between independent agency systems and other marketing systems is the... correct answers agency expiration list Foreign Insurer correct answers An insurer licensed to operate in a state but incorporated in another state Domestic Insurer correct answers An insurer doing business in the jurisdiction in which it was incorporated Alien Insurer correct answers An insurer domiciled in a country other than the US Direct Response Marketing System correct answers Greatly reduces compensation costs but has higher advertising costs Agency Expiration List correct answers An agency's most valuable asset (does not belong to insurer) Important consideration when selecting distribution channels correct answers Does the channel capitalize on its core capabilities? Knowledge acquired by the agent is presumed to be.. correct answers knowledge acquired by the insurer Premium collection method used for personal insurance and small commercial accounts correct answers Direct Bill What specifies scope of authority of an agent? correct answers Agency contract Agency Bill correct answers Payment 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 correct answers Premium (less commission) is forwarded to the insurer when the producer collects it or when it comes due. Least complex method Statement Basis correct answers Insurer sends statement to the producer showing the premiums due. Producer is obligated to pay the premiums as due. Account Current Basis correct answers Producer 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 how often the producer must submit the account current statement (usually monthly). Producer must pay when premium is due, even if policyholder hasn't paid.