fill in the blanks Flashcards
The primary function of insurance is to ______ ____ - the losses of the ___ are shared by ____. To obtain this, insurers insure a _____ number of risks
spread risk, few, many, large
Diversity of type of risk is to write s many different _____ of risk as possible
Kinds
Diversity of location means that Insurer writes as many different ______ as possible
places
___________ ________ exist to make a profit: can be either incorporated or unincorporated
Proprietary Insurers
___-___________ _________are organized for reasons other than profit; are owned nd controlled by policy holders
Non-Proprietary Insurers
The two major distribution systems are:
- __________ ______/________ ______
- ______ _______ ______
- independent Agency/Brokerage system
2. Direct writing system
___________ _____/_________ ______ :
- owners are not employees of insurers
- owners are responsible for payment of all expenses associated with the business
- own the business they produce
- have increased responsibility for client services
Independent Agency/Brokerage System
______ ______ ______:
- Producers are employees of the insurer
- Remuneration of producers may be on either a salary or commission basis or a combination of these
- Insurer owns all the business written
- administration function assumed by insurer
Direct Writing system
Joint stock companies are companies owned by ____________
Stockholders
Mutual companies are companies owned by _____________
Policy holders
Lloyd’s of London is a unique organization made up of individual people and groups of people known as __________ who underwrite the insurance requirements of their client
syndicates
Fraternal Societies exist for the benefits of its _______
members
Employed agents work directly for the _______. They are known as ______ _______ because they sell insurance directly to the public
Insurer, Direct writers
_______ are independent businesspeople. The businesses they work for are known as __________.
Brokers, brokerage
___________ ______ is one who contracts with at least two or more insurance companies to sell their insurance policies to the public
Independent agents
A ______ _____ represents only one company and sells for only one company
direct agent
___________ _________ work for a fee paid by the insurer, they repot to the company claims supervisor or manager. They work for both the insured and the insurer
independent adjuster
_________ _______ are used when a client’s risk cannot e adequately covered through the one or more insurers that a broker/agent represents
Wholesale Brokers
Public adjusters are never paid by the ______. They are paid on a ___ _____
Insurer, fee basis
Choosing the most appropriate insurer for a particular policy is called _________
marketing
______ ________ directs the investigation of a staff adjuster or an independent adjuster, reviews the adjusters report and approves any claims settlement
Claims examiner
Company Adjusters are ________ employees
Salaried
