cpcu 520 ch 3 review notes Flashcards

1
Q

Primary demand for technology

A

ease of use

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2
Q

Activities performed by marketing

A

Marketing research, market dvelopment, marketing info, marketing planning, product development, advertising/promotion, customer and public relations, sales fulfillment

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3
Q

Two broad categories of market data

A

Secondary data and primary data

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4
Q

Secondary data

A

collected by other parties, research typically begins w/ this as it is immediately available @ no cost

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5
Q

Primary data

A

collection more expensive, addresses specific issues

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6
Q

Bases of market segmentation

A

Behavioristic (purchase behavior)
Geographic (geographic units)
Demographic (demographic variables ie age gender etc)
Psychographic (values, personalities etc)

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7
Q

Marketing segment should be

A

Accessible, substantial, responsive

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8
Q

marketing info activity system types

A

Inernal accounting system

Marketing monitoring system (external enviroment)

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9
Q

Typical marketing plan

A
product proposal/sales goals
situational analysis
marketing goals
marketing strategies
projected outcome
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10
Q

Product dvelopment steps

A

opportunity assesment, development of contract, uw and pricing, business forecast, regulatory requirements, distribution requirements, introduction

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11
Q

Insurance broker

A

independent bus owner/firm selling ins by representing customers rather than insurers

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12
Q

Distinction btwn independent agents/brokers & other distribution systems

A

ownership of agency expiration list

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13
Q

Compensation for independent agents/brokers

A

Flat percent commission, contingent or profit-sharing commission basedon volume or loss ratio goals

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14
Q

Independent agent networks/agent groups/agent clusters/agent alliances

A

independent agencies/brokerages joining together to gain advantages normally available only to lg national/regional brokers

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15
Q

managing general agents (MGA’s)

A

intermediaries btwn insurers and agents/brokers who sell ins directly to customer. Advantage: low fixed cost, specialty expertise, assumption of insurer activities

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16
Q

Exclusive agency mkt system

A

independent contractors called exclusive/captive agents, not employees of insurers - represent a single insurer, do not own expirations

17
Q

Direct writer system

A

uses sales agents who are employees of insurers they represent

18
Q

Group marketing

A

sells ins through call centers, internet, direct mail or producer to individuals or members of same organization

19
Q

risk management review

A

primary method of determining prospect’s ins needs

20
Q

methods of transmitting prem to insurer under agency bill

A
Item basis (prem forwarded when collected or when becomes due)
Statement basis (insurer sends statement to producer showing premiums due)
Acct current basis (producer prepares statement showing premiums due to insurer after deducting commission
21
Q

Market intelligence

A

info gathered/analyzed regarding a co.’s markets to improve competitive decision making

22
Q

countersignature laws

A

laws requiring all policies covering subjects of ins within state to be signed by resident producer licensed in that state

23
Q

Affinity marketing

A

type of group marketing targeting various grps basd on profession, assoc, interests, hobbies, attitudes

24
Q

direct bill

A

insurer assumes all responsibilty for sending prem bills to insd & collecting prem