Which of the following statements about stock insurers is true?
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Terms in this set (99)
Which of the following statements about stock insurers is true?
Stockholders bear any losses and share in any profits.
Why are some mutual insurers referred to as "assessment mutuals"?
They can assess policyholders if premiums are insufficient to pay losses and expenses.
Which of the following statements about reciprocal exchanges is (are) true?
Reciprocal exchanges usually specialize in health insurance.
Reciprocal exchanges are unincorporated mutual insurance companies.
II only
Which of the following statements about Lloyd's of London is true?
Coverage is actually written by syndicates who belong to Lloyd's of London.
Which of the following statements about insurance brokers is (are) true?
They legally represent the insured rather than the insurance company.
They are prohibited from being licensed as agents.
I only
Which of the following statements about personal producing general agents is (are) true?
They often have the option of recruiting and training sub-agents.
They are independent agents who produce substantial amounts of life insurance with one insurer.
both I and II
Which of the following statements about life insurance marketing systems is true?
Some exclusive agents who market property and liability insurance also sell life insurance.
Advantages of the direct response system for marketing life insurance include which of the following?
Advertising can be specifically directed to selected markets.
Complex products can be easily sold.
I only
A property and casualty insurer in which the salesperson is an employee of the insurer, not an independent contractor, is called a
direct writer.
Which of the following statements about the sale of property and liability insurance through the direct response system is (are) true?
Selling expenses are higher because market segmentation tends to be less precise than with other marketing methods.
It is the most appropriate system for selling complex products.
neither I nor II