RMIN 4000 Test 2 Daniel Brown Questions and Answers 100% Correct!

Stock Insurer - ANSWER-Corporation owned by Stockholders (earn profit for stockholders by increasing the value of the stock and paying dividends). Mutual Insurer - ANSWER-Corporation owned by Policyholders (profits are distributed to policyholders by dividends or rate reductions). Advance Premium Mutual Assessment Mutual Fraternal Insurer Lloyd's of London - ANSWER-Specialized lines of business. Brokers - ANSWER-represent policyholders to arrange coverage with syndicates. Legally represents insured. Syndicates - ANSWER-Offer insurance contracts in the market. Managing Agents - ANSWER-Manage the syndicates, who typically specialize in certain lines. Underwriters - ANSWER-Work for the syndicates to assess risks and determine premiums. Insurance Agent - ANSWER-Someone who legally represents the principal (insurance company) and has the authority to act on the principal's behalf (Company's Legal Representative). Insurance Binders - ANSWER-Provide temporary insurance until the policy is actually written. Surplus Lines Broker - ANSWER-Licensed to place business with a nonadmitted insurer. Surplus Lines - ANSWER-Refer to any type of insurance for which there is no available market in the state. Nonadmitted Insurer - ANSWER-An insurer not licensed to do business in the state.