RMIN 4000 UGA EDMUNDS
COMPREHENSIVE ASSESSMENT QUESTIONS
AND VERIFIED ANSWERS GRADED A+
●● 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
Answer: The 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?
Answer: No
●● Lloyd's of London brokers
Answer: represent policyholders to arrange coverage with syndicates
●● syndicates
Answer: offer insurance contracts in the market
●● who makes up a syndicate?
Answer: members, managing agents, and underwriters
●● insurance agent
, Answer: Someone 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?
Answer: Yes, when the agent is acting within the scope of authority
●● Agent Binding Authority
Answer: provide temporary insurance until the policy is actually written
(typically with P&C, NOT life
●● brokers
Answer: someone who legally represents the insured, places appropriate
coverage, is paid commission from insurer, and
●● importance of large brokerage firms
Answer: very 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
COMPREHENSIVE ASSESSMENT QUESTIONS
AND VERIFIED ANSWERS GRADED A+
●● 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
Answer: The 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?
Answer: No
●● Lloyd's of London brokers
Answer: represent policyholders to arrange coverage with syndicates
●● syndicates
Answer: offer insurance contracts in the market
●● who makes up a syndicate?
Answer: members, managing agents, and underwriters
●● insurance agent
, Answer: Someone 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?
Answer: Yes, when the agent is acting within the scope of authority
●● Agent Binding Authority
Answer: provide temporary insurance until the policy is actually written
(typically with P&C, NOT life
●● brokers
Answer: someone who legally represents the insured, places appropriate
coverage, is paid commission from insurer, and
●● importance of large brokerage firms
Answer: very 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
