RMIN 4000 Edmunds Exam 2 | All Questions and
Correct Answers | Graded A+ | Verified Answers | Just
Released
major types of private insurers - (ANSWER)Stock, Mutual, and Lloyd's of London
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 - (ANSWER)any type of insurance for which there is no available
market in the state
non-admitted insurer - (ANSWER)an insurer not licensed to do business in the
state
independent agency distribution - (ANSWER)represent several unrelated
insurers, agency owns expirations and renewal rights
exclusive agency system - (ANSWER)the agent represents only one insurer or
group of insurers under common ownership. agents do not own expirations or
renewal rights to policies
Correct Answers | Graded A+ | Verified Answers | Just
Released
major types of private insurers - (ANSWER)Stock, Mutual, and Lloyd's of London
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 - (ANSWER)any type of insurance for which there is no available
market in the state
non-admitted insurer - (ANSWER)an insurer not licensed to do business in the
state
independent agency distribution - (ANSWER)represent several unrelated
insurers, agency owns expirations and renewal rights
exclusive agency system - (ANSWER)the agent represents only one insurer or
group of insurers under common ownership. agents do not own expirations or
renewal rights to policies
