fill in the blanks

Question 1

The primary function of insurance is to ______ ____ - the losses of the ___ are shared by ____. To obtain this, insurers insure a _____ number of risks

Answer 1

spread risk, few, many, large

Question 2

Diversity of type of risk is to write s many different _____ of risk as possible

Answer 2

Kinds

Question 3

Diversity of location means that Insurer writes as many different ______ as possible

Answer 3

places

Question 4

___________ ________ exist to make a profit: can be either incorporated or unincorporated

Answer 4

Proprietary Insurers

Question 5

___-___________ _________are organized for reasons other than profit; are owned nd controlled by policy holders

Answer 5

Non-Proprietary Insurers

Question 6

The two major distribution systems are:

1. __________ ______/________ ______
2. ______ _______ ______

Answer 6

1. independent Agency/Brokerage system

2. Direct writing system

Question 7

___________ _____/_________ ______ :

• 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

Answer 7

Independent Agency/Brokerage System

Question 8

______ ______ ______:

• 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

Answer 8

Direct Writing system

Question 9

Joint stock companies are companies owned by ____________

Answer 9

Stockholders

Question 10

Mutual companies are companies owned by _____________

Answer 10

Policy holders

Question 11

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

Answer 11

syndicates

Question 12

Fraternal Societies exist for the benefits of its _______

Answer 12

members

Question 13

Employed agents work directly for the _______. They are known as ______ _______ because they sell insurance directly to the public

Answer 13

Insurer, Direct writers

Question 14

_______ are independent businesspeople. The businesses they work for are known as __________.

Answer 14

Brokers, brokerage

Question 15

___________ ______ is one who contracts with at least two or more insurance companies to sell their insurance policies to the public

Answer 15

Independent agents

Question 16

A ______ _____ represents only one company and sells for only one company

Answer 16

direct agent

Question 17

___________ _________ 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

Answer 17

independent adjuster

Question 18

_________ _______ are used when a client’s risk cannot e adequately covered through the one or more insurers that a broker/agent represents

Answer 18

Wholesale Brokers

Question 19

Public adjusters are never paid by the ______. They are paid on a ___ _____

Answer 19

Insurer, fee basis

Question 20

Choosing the most appropriate insurer for a particular policy is called _________

Answer 20

marketing

Question 21

______ ________ directs the investigation of a staff adjuster or an independent adjuster, reviews the adjusters report and approves any claims settlement

Answer 21

Claims examiner

Question 22

Company Adjusters are ________ employees

Answer 22

Salaried