Fin 341 Liebenberg Test 2 UPDATED ACTUAL Questions And Correct Answers
Terms in this set (96)
more concentrated than the aggregate national property the property-casualty insurance market in Mississippi is
casualty insurance market
stock insurers a corporation owned by stockholders; objective is to earn profit for stockholders
by increasing the value of stock and paying dividends
, mutual insurer a corporation owned by the policy owners
demutualization whereby a mutual company is converted into a stock insurer
holding company a company that directly or indirectly controls an authorized insurer
pure conversion mutual company amends its articles of incorporation to reorganize as a stock
company
merger mutual company and stock company (organized or acquired by the mutual
company) join together into a single company; the stock company is the survivor
bulk reinsurance cedes all of its insurance business and transfers all of its assets and liabilities to a
stock company; the mutual company is then dissolved
access equity capital and improve efficiency mutual insurers demutualize in order to
lloyd's of london not an insurer, but a society of members who underwrite insurance in syndicates
reciprocal exchange an unincorporated organization in which insurance is exchanged among the
members (called subscribers)
captive insurer an insurer owned by a parent firm for the purposes of insuring the parent firm's
loss exposures
agent someone who legally represents the principal and has the authority to act on the
principal's behalf
binder provides temporary insurance until the policy is actually written
broker someone who legally represents the insured and: solicits applications and
attempts to place coverage with an appropriate insurer, is paid a commission from
the insurers where the business is placed, and doesn't have the authority to bind
the insurer
surplus lines broker/wholesale broker licensed to place business with a non-admitted insurer
surplus lines refer to any type of insurance for which there is no available market within the
state and coverage must be placed with a non-admitted insurer
a retail agent/broker and an insurance company a wholesale broker is an intermediary between
personal selling distribution system the majority of life insurance policies and annuities sold today are through
career/affiliated agents full-time agents who usually represent one insurer and are paid on a commission
basis
multiple line agency system agents who sell primarily property and casualty insurance also sell individual life
and health insurance products
Terms in this set (96)
more concentrated than the aggregate national property the property-casualty insurance market in Mississippi is
casualty insurance market
stock insurers a corporation owned by stockholders; objective is to earn profit for stockholders
by increasing the value of stock and paying dividends
, mutual insurer a corporation owned by the policy owners
demutualization whereby a mutual company is converted into a stock insurer
holding company a company that directly or indirectly controls an authorized insurer
pure conversion mutual company amends its articles of incorporation to reorganize as a stock
company
merger mutual company and stock company (organized or acquired by the mutual
company) join together into a single company; the stock company is the survivor
bulk reinsurance cedes all of its insurance business and transfers all of its assets and liabilities to a
stock company; the mutual company is then dissolved
access equity capital and improve efficiency mutual insurers demutualize in order to
lloyd's of london not an insurer, but a society of members who underwrite insurance in syndicates
reciprocal exchange an unincorporated organization in which insurance is exchanged among the
members (called subscribers)
captive insurer an insurer owned by a parent firm for the purposes of insuring the parent firm's
loss exposures
agent someone who legally represents the principal and has the authority to act on the
principal's behalf
binder provides temporary insurance until the policy is actually written
broker someone who legally represents the insured and: solicits applications and
attempts to place coverage with an appropriate insurer, is paid a commission from
the insurers where the business is placed, and doesn't have the authority to bind
the insurer
surplus lines broker/wholesale broker licensed to place business with a non-admitted insurer
surplus lines refer to any type of insurance for which there is no available market within the
state and coverage must be placed with a non-admitted insurer
a retail agent/broker and an insurance company a wholesale broker is an intermediary between
personal selling distribution system the majority of life insurance policies and annuities sold today are through
career/affiliated agents full-time agents who usually represent one insurer and are paid on a commission
basis
multiple line agency system agents who sell primarily property and casualty insurance also sell individual life
and health insurance products
