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 how often the producer must submit the account