Exam 5: Types of Insurers and Marketing Systems

Big Mutual Insurance Company would like to take advantage of financial services deregulation by acquiring a bank and a stock brokerage firm.Big Mutual,however,would have trouble raising the funds needed to make these acquisitions under the mutual form of organization.Big Mutual is planning to switch from the mutual form of organization to the stock form,and to issue shares of common stock to raise capital.This change in organizational structure is called

R.I.P.Company manufactures herbicide and pesticide.The company had difficulty finding affordable liability insurance.R.I.P.established its own insurance company based in Bermuda for the purpose of insuring R.I.P.'s loss exposures.The company that R.I.P.formed is called a

Neil needs insurance that is unavailable in the state where he lives.To obtain insurance from a nonadmitted insurer,Neil should contact a

Which of the following statements about Blue Cross and Blue Shield plans is (are)true? I.Blue Cross and Blue Shield plans can be organized on a nonprofit basis or on a for-profit basis. II.Blue Cross provides coverage for hospital services; Blue Shield provides coverage for physicians' and surgeons' fees.