RMIN 4000 Brown Test 2 Questions and
Answers Graded A+
Stock Insurer - Correct answer-An insurer that is owned by its stockholders and
formed as a corporation for the purpose of earning a profit for the stockholders
Mutual insurer - Correct answer-An insurer that is owned by its policyholders and
formed as a corporation for the purpose of providing insurance to them
Types of mutual insurer - Correct answer-advanced premium mutual, assessment
mutual, & fraternal insurers
advanced premium mutual - Correct answer-owned by the policyholders; there are
no stockholders, and the insurer does not issue assessable policies
assessment mutual - Correct answer-has the right to assess policyowners an
additional amount if the insurer's financial operations are unfavorable
Fraternal Insurer - Correct answer-a mutual insurer that provides life and health
insurance to members of a social or religious organization; very rare; has to be
nonprofit
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, Lloyd's of London - Correct answer-An association of individuals and companies
that underwrite insurance on their own accounts and provide specialized
coverages; not an insurer; policies are extreme like athletes, amusement parks
Lloyd structure- Brokers - Correct answer-represent policy holders to arrange
coverage with syndicates
Lloyd structure- syndicates - Correct answer-offer insurance contracts in market
Lloyd's Syndicates: managing agents - Correct answer-manage the syndicates who
typically specialize in certain lines
Lloyd's Syndicates: underwriters - Correct answer-work for the syndicates to
assess risks and determine premiums
Lloyd's Syndicates: members - Correct answer-provide capital to the syndicates
(they receive profits or bear losses), most are corporations or limited partnerships
Other Types of Private Insurers - Correct answer-Bluecross Blueshield, health
maintenance organization (HMO), captive insurers
Insurance Agent - Correct answer-someone who legally represents the insurance
company and has the authority to act on the company's behalf
©COPYRIGHT 2025, ALL RIGHTS RESERVED 2
Answers Graded A+
Stock Insurer - Correct answer-An insurer that is owned by its stockholders and
formed as a corporation for the purpose of earning a profit for the stockholders
Mutual insurer - Correct answer-An insurer that is owned by its policyholders and
formed as a corporation for the purpose of providing insurance to them
Types of mutual insurer - Correct answer-advanced premium mutual, assessment
mutual, & fraternal insurers
advanced premium mutual - Correct answer-owned by the policyholders; there are
no stockholders, and the insurer does not issue assessable policies
assessment mutual - Correct answer-has the right to assess policyowners an
additional amount if the insurer's financial operations are unfavorable
Fraternal Insurer - Correct answer-a mutual insurer that provides life and health
insurance to members of a social or religious organization; very rare; has to be
nonprofit
©COPYRIGHT 2025, ALL RIGHTS RESERVED 1
, Lloyd's of London - Correct answer-An association of individuals and companies
that underwrite insurance on their own accounts and provide specialized
coverages; not an insurer; policies are extreme like athletes, amusement parks
Lloyd structure- Brokers - Correct answer-represent policy holders to arrange
coverage with syndicates
Lloyd structure- syndicates - Correct answer-offer insurance contracts in market
Lloyd's Syndicates: managing agents - Correct answer-manage the syndicates who
typically specialize in certain lines
Lloyd's Syndicates: underwriters - Correct answer-work for the syndicates to
assess risks and determine premiums
Lloyd's Syndicates: members - Correct answer-provide capital to the syndicates
(they receive profits or bear losses), most are corporations or limited partnerships
Other Types of Private Insurers - Correct answer-Bluecross Blueshield, health
maintenance organization (HMO), captive insurers
Insurance Agent - Correct answer-someone who legally represents the insurance
company and has the authority to act on the company's behalf
©COPYRIGHT 2025, ALL RIGHTS RESERVED 2
