Exam 5: Types of Insurers and Marketing Systems

Which of the following statements about insurance brokers is (are)true? I.They legally represent the insured rather than the insurance company. II.They are prohibited from being licensed as agents.

All of the following are reasons why mutual insurance companies convert to stock insurance companies EXCEPT

Which of the following statements about Lloyd's of London is true?

Big Life Insurance Company purchased Regional Bank.Regional Bank has 27 branches in four states.Big Life Insurance Company required one employee at each bank branch to become a licensed life insurance agent and to sell Big Life Insurance Company annuities and life insurance products.This distribution channel is an example of the

The local franchise of a national bar and grill chain continued to serve a drunk customer.The drunk customer tried to drive home.He hit and killed two people who were riding bicycles.The representatives of those who were killed filed a lawsuit against the national chain.As jury awards in the area where the incident occurred are high,insurers selling liquor liability insurance refused to issue new coverage until the case was resolved.Because no admitted insurers sell the coverage,liquor liability insurance in this case is considered a(n)

Sarah owns a property and liability insurance agency.She is authorized to represent several insurance companies and she is compensated by commissions.Sarah's agency owns the expiration rights to the business she sells.Sarah is a(n)

The corporate structure of mutual insurers has changed in recent years.All of the following are examples of significant changes EXCEPT

Which of the following statements about personal producing general agents is (are)true? I.They often have the option of recruiting and training sub-agents. II.They are independent agents who produce substantial amounts of life insurance with one insurer.

Which of the following statements about the exclusive agency system for marketing property and liability insurance is true?

Which of the following statements about mutual insurers is true?

Vincent is a specialized wholesale producer who had been vested with underwriting authority by an insurer.Vincent helps to write professional liability insurance,surplus lines,and some personal lines in a sparsely populated area in his territory.Vincent is a(n)

Peggy is an independent insurance agent who places substantial amounts of business with XYZ Insurance Company.XYZ pays Peggy a bonus when she meets a sales goal.XYZ also allows Peggy to recruit and train sub-agents.She receives additional commissions based on the sales generated by the sub-agents.Based on this description,we can conclude that Peggy is a