Chapter 10: The Insurance Marketplace

Question 1

Commissioner

Answer 1

The head of the state department of insurance

Question 2

Inducement

Answer 2

an offer that attempts to influence the other party

Question 3

Injunction

Answer 3

a court issued order to stop committing an act or violation

Question 4

Restitution

Answer 4

Restoration to the original condition or repayment

Question 4

Surplus Lines Insurance

Answer 4

Insurance that is not available from admitted insurers

Question 5

3 Distribution Systems of Insurance:

Answer 5

1.) Agency: A producer is a legal entity, either human or corporate, that acts on behalf of, or in the place of, its principal. In insurance, the producer is the agent, and the principal is the insurer.
Independent agent: has contracts with more than 1 insurer. The agent can more the client to a different insurer for the renewal.
Captive Agent: Has a contract with 1 company
Brokers: Represents the customer
2.) Direct Response: Marketing
3.) Online Direct sales: online marketing