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RMIN Test 2 Daniel Brown UGA Study Guide Solutions

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RMIN Test 2 Daniel Brown UGA Study Guide Solutions stock insurers mutual insurers Lloyd's of London - ANSWER-Major Types of Private Insurers stock insurer - ANSWER-a corporation owned by stockholders objective is to earn profit for stockholders by increasing the value of the stock and paying ...

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  • November 11, 2024
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RMIN Test 2 Daniel Brown UGA Study

Guide Solutions


stock insurers




mutual insurers




Lloyd's of London - ANSWER✔✔-Major Types of Private Insurers


stock insurer - ANSWER✔✔-a corporation owned by stockholders




objective is to earn profit for stockholders by increasing the value of the stock and paying dividends


mutual insurer - ANSWER✔✔-a corporation owned by policyholders




profits are distributed to policyholders by dividends or rate reductions


advance premium mutual




assessment mutual




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fraternal insurer - ANSWER✔✔-types of mutual insurers


advance premium mutual - ANSWER✔✔-insurer does not issue assessable policies


assessment mutual - ANSWER✔✔-insurer has the right to assess policyholders an additional amount if

the insurer's financial operations are unfavorable


fraternal insurer - ANSWER✔✔-proveds life and health insurance to members of a social or religious

organizations


Lloyd's of London - ANSWER✔✔-World's leading market for members to write specialized lines of

business




NOT an insurer


Lloyd's brokers




Lloyd's Syndicates - ANSWER✔✔-Lloyd's structure


Lloyd's Brokers - ANSWER✔✔-represents policyholders to arrange coverage with syndicates


Lloyd's Syndicates - ANSWER✔✔-offer insurance contracts in the market




must meet Lloyd's stringent capital requirements


managing agents - ANSWER✔✔-manage the syndicates, who typically specialize in certain lines


underwriters - ANSWER✔✔-work for the syndicates to assess risk and determine premiums

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provide capital to syndicates, receiving profits or bearing losses




most are corporations or limited partnerships




"Names" are high net worth individuals - ANSWER✔✔-members of syndicates


insurance agent - ANSWER✔✔-someone who legally represents the principal and has the authority to

act on the principal's behalf


principal - ANSWER✔✔-legally repsonsible for all acts of an agent when the agent is acting within the

scope of authority


insurance binders - ANSWER✔✔-provide temporary insurance until the policy is actually written




can typically be provided by property and casualty agents




life insurance agents usually have no authority to issue binders


insurance broker - ANSWER✔✔-someone who legally represents the insured and:




solicits applications and places coverage with the appropriate insurer




is paid a commission from the insurer

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