Exam 5: Types of Insurers and Marketing Systems

A reciprocal exchange is managed by a corporation that is authorized to collect premiums, pay losses, invest funds, seek new members, and perform other functions. This corporate manager is called a(n)

David is a successful independent insurance agent. Recently, one of the life insurance companies with whom he places business offered him a special financial arrangement. If David meets sales targets, he will receive large bonuses. He will also be able to recruit and train sub-agents and receive an over-riding commission based on the amount of life insurance the sub-agents sell. Based on this description, David is a(n)

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.

The leaders of a religious group decided to start a life insurance organization to insure members of the religious group. The insurer will operate as a nonprofit organization, thus receiving favorable tax treatment. The insurer formed will be a

Which of the following statements about Lloyds of London (are) true? I.The majority of the business underwritten by Lloyds of Londo? Is for unusual risks, such as valuable race horses and professional athletes. II.Lloyds of Londo? Is a group of underwriters who underwrit? Insurance, not a? Insurance company.

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