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RMIN 4000 Exam 2 Study Guide Solutions

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RMIN 4000 Exam 2 Study Guide Solutions Major Types of Private Insurers - ANSWER-Stock Insurers Mutual Insurers Lloyds of London Stock Insurer - ANSWER--A corporation owned by stockholders. -Objective is to earn profits for the stockholders by increasing stock and paying dividends. (Progress...

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  • November 13, 2024
  • 21
  • 2024/2025
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EmilyCharlene
RMIN 4000 Exam 2 Study Guide
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Major Types of Private Insurers - ANSWER✔✔-Stock Insurers


Mutual Insurers


Lloyds of London


Stock Insurer - ANSWER✔✔--A corporation owned by stockholders.


-Objective is to earn profits for the stockholders by increasing stock and paying

dividends.


(Progressive, Allstate, Metlife, etc.)


Mutual Insurer - ANSWER✔✔--a corporation owned by policyholders.


-profits are distributed to policyholders by dividends or rate reductions.


(statefarm, nationwide, liberty mutual)


types of mutual insurers - ANSWER✔✔-assesement


advanced


fraternal


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,Lloyd's (of London) - ANSWER✔✔--NOT an insurer, but a society of members who

underwrite insurance in syndicates.


-World's leading market that provides services and physical facilities for its members to

write specialized lines of insurance


Lloyd's broker - ANSWER✔✔-represent policyholders to arrange coverage with

syndicates


Lloyd's Syndicates - ANSWER✔✔-those insurance companies that offer insurance

contracts in the market


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

certain lines


underwriters - ANSWER✔✔-work for the syndicates to asses risks and determine

premiums


other types of private insurers - ANSWER✔✔-blue cross blue shield plans


health maintenance organizations (HMO'S)


captive insurers


insurance agent - ANSWER✔✔--someone who legally represents the principle

(insurance company) and has the authority to act on the principle's behalf




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Page 2/21

, -the principle (insurance company) is legally responsible 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 be provided by property and casualty (P&C) 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.


◦In general, does NOT have the authority to bind


large brokerage firms - ANSWER✔✔--Very important in Commercial P&C coverage.


-May have knowledge of highly specialized insurance markets.


-May provide risk management and losscontrol services.


(AON, Marsh & McLennan, Willis Towers Watson)


surplus lines broker - ANSWER✔✔-Licensed to place business with a nonadmitted

insurer.


surplus lines - ANSWER✔✔-Insurance for which there is no readily available, admitted

market in the state
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