RMIN 4000 Exam 2 Questions and Answers 100% Correct!

Major Types of Private Insurers - ANSWER-Stock Insurers Mutual Insurers Lloyds of London Stock Insurer - ANSWER--A corporation owned by stockholders. -Objective is to earn profits for the stockholders by increasing stock and paying dividends. (Progressive, Allstate, Metlife, etc.) Mutual Insurer - ANSWER--a corporation owned by policyholders. -profits are distributed to policyholders by dividends or rate reductions. (statefarm, nationwide, liberty mutual) types of mutual insurers - ANSWER-assesement advanced fraternal Lloyd's (of London) - ANSWER--NOT an insurer, but a society of members who underwrite insurance in syndicates. -World's leading market that provides services and physical facilities for its members to write specialized lines of insurance Lloyd's broker - ANSWER-represent policyholders to arrange coverage with syndicates Lloyd's Syndicates - ANSWER-those insurance companies that 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 asses risks and determine premiums other types of private insurers - ANSWER-blue cross blue shield plans health maintenance organizations (HMO'S) captive insurers insurance agent - ANSWER--someone who legally represents the principle (insurance company) and has the authority to act on the principle's behalf -the principle (insurance company) is legally responsible for all acts of an agent when the agent is acting within the scope of authority