Chapter 2 Flashcards
An insurance company that sells insurance products directly to customers is:
a) A director
b) An intermediary
c) A direct writer
d) An agency
C
An intermediary is a person or organization who:
a) Acts as a mediator or link between two parties.
b) Works at a bank.
c) Is an employee at Lloyd’s London
d) Works for the government
A
Which of the following best describes an insurance broker?
a) Someone who is authorized to sell the products of one insurance company only.
b) Someone who primarily represents the interests of the insurance company in an insurance transaction.
c) Someone who is an independent business.
d) Someone who primarily represents the interests of the client in an insurance transaction.
D
Which of the following statements is not correct?
a) A brokerage owns the business it produces.
b) An insurance brokerage employs agents to sell service and clients.
c) A brokerage is responsible for providing services to its clients.
d) A brokerage is an independently owned business.
B
In an insurance transaction, insurance brokers primarily represent the interests of:
a) The underwriter.
b) The client
c) The insurer
d) Other brokers
B
In Canada, there are two types of insurers. They are:
a) Government and private.
b) Private and direct.
c) Lloyd’s and government.
d) Stock and mutual.
A
Which of the following types of insurance is not sold by the Government of Ontario?
a) Automobile
b) Health
c) Worker’s compensation
d) Employment
A
A stock insurance company is owned by:
a) The government
b) Policyholders
c) Shareholders
d) The stock exchange
C
A mutual insurance company is owned by:
a) The government.
b) Policyholders
c) Shareholders
d) Employees
B
What is one of the primary goals of a mutual insurance company?
a) To make a profit for its shareholders.
b) To operate on a national basis
c) To collect sufficient premiums to cover the costs of paying claims and operating the company.
d) To return excess premiums to its policy holders every year.
C
