RMIN 4000 Exam 2 Questions and Answers 100% Accurate

RMIN 4000 Exam 2 Questions and Answers 100%
Accurate




Major Types of Private Insurers - (correct answer) -Stock Insurers
io io io io io io io io io




Mutual Insurers io




Lloyds of London
io io




Stock Insurer - (correct answer) --A corporation owned by stockholders.
io io io io io io io io io io




-Objective is to earn profits for the stockholders by increasing stock and paying dividends.
io io io io io io io io io io io io io io




(Progressive, Allstate, Metlife, etc.) io io io




Mutual Insurer - (correct answer) --a corporation owned by policyholders.
io io io io io io io io io




-profits are distributed to policyholders by dividends or rate reductions.
io io io io io io io io io




(statefarm, nationwide, liberty mutual)
io io io




types of mutual insurers - (correct answer) -assesement
io io io io io io io




advanced

fraternal

Lloyd's (of London) - (correct answer) --NOT an insurer, but a society of members who underwrite
io io io io io io io io io io io io io io io




insurance in syndicates.
io io io




-World's leading market that provides services and physical facilities for its members to write
io io io io io io io io io io io io io




specialized lines of insurance
io io io io




Lloyd's broker - (correct answer) -represent policyholders to arrange coverage with syndicates
io io io io io io io io io io io




Lloyd's Syndicates - (correct answer) -those insurance companies that offer insurance contracts in the
io io io io io io io io io io io io io




market
io




managing agents - (correct answer) -manage the syndicates, who typically specialize in certain lines
io io io io io io io io io io io io io

, underwriters - (correct answer) -work for the syndicates to asses risks and determine premiums
io io io io io io io io io io io io io




other types of private insurers - (correct answer) -blue cross blue shield plans
io io io io io io io io io io io io




health maintenance organizations (HMO'S)
io io io




captive insurers io




insurance agent - (correct answer) --someone who legally represents the principle (insurance company)
io io io io io io io io io io io io




and has the authority to act on the principle's behalf
io io io io io io io io io io




-the principle (insurance company) is legally responsible for all acts of an agent when the agent is
io io io io io io io io io io io io io io io io




acting within the scope of authority
io io io io io io




insurance binders - (correct answer) -provide temporary insurance until the policy is actually written
io io io io io io io io io io io io io




-can be provided by property and casualty (P&C) agents
io io io io io io io io




-life insurance agents usually have no authority to issue binders
io io io io io io io io io




insurance broker - (correct answer) -Someone who legally represents the insured and:
io io io io io io io io io io io




io ◦Solicits applications and places coverage with the appropriate insurer.
io io io io io io io io




io ◦Is paid a commission from the insurer.
io io io io io io




io ◦In general, does NOT have the authority to bind
io io io io io io io io




large brokerage firms - (correct answer) --Very important in Commercial P&C coverage.
io io io io io io io io io io io




-May have knowledge of highly specialized insurance markets.
io io io io io io io




-May provide risk management and losscontrol services.
io io io io io io




(AON, Marsh & McLennan, Willis Towers Watson)
io io io io io io




surplus lines broker - (correct answer) -Licensed to place business with a nonadmitted insurer.
io io io io io io io io io io io io io




surplus lines - (correct answer) -Insurance for which there is no readily available, admitted market in
io io io io io io io io io io io io io io io




the state
io io




nonadmitted insurer - (correct answer) -an insurer not licensed to do business in the state
io io io io io io io io io io io io io io




Distribution-Independent Agency - (correct answer) --Usually represents several unrelated insurers. --- io io io io io io io io io io




Agents are paid a commission which varies by the line of insurance.
io io io io io io io io io io io io




-The agency owns the expirations or renewal rights to the business.
io io io io io io io io io io