Chapter 2 Flashcards
How Insurance is Organized in Canada
The act of selling or issuing an insurance policy.
Writing insurance
They sell its insurance products directly to consumers, typically through centralized call centres and online.
Example : TD Insurance, Belair Direct
Direct Writers
Are employees of the insurances company and are limited to selling only those insurance products offered by the insurer
Sales Agents
Is a person or organization who acts as mediator or link between two parties.
Travel agents, investment brokers, reals estate brokers, are common examples
Intermediaries
2 types of Intermediaries
Insurance agents and Insurance Brokers
are authorizes to sell the products of one insurance company only, and in doing so, they represent the interest of the insurance company. In Ontario, agents are regulated and licensed by a different regime than insurance brokers. Some agents are employed by direct writers, while others work for independent agencies.
Insurance agents
represent the interest of the policyholder in an insurance transaction, and they can sell insurance products of more than one insurance company. They perform their work at brokerage firms.
Insurance Broker.
Types of Insurance Companies
Government Insurers
Private Insurers
involved in providing various insurance plans, including medical insurance and worker’s compenstation
Government Insurers
Which provinces operate compulsory automobile insurance systems? Vehicle owners in these provinces are required to purchase mandatory third-part liability insurance coverage from the government.
In most cases, additional insurance - such as collision coverage and excess liability limits - may be purchased for Private insurers or from the government
British Columbia, Saskatchewan, and Manitoba.
In this province, the government manages the automobile insurance regime for bodily injury insurance only.
Quebec
This province operates as in insurance division, offering all forms of P&C insurance through SGI Canada.
Saskatchewan
This is most insurance policies are.
Its basic function is to write or sell insurance policies to those require insurance
Private Insurance
type of Private Insurance
ownership : shareholders
main goal : cover cost and make a profit for shareholders
Stock Insurance Companies
Type of Private Insurance
ownership: policyholders
main goal : collect sufficient premiums to cover costs.
Mutual insurance companies
