How Insurance is Sold

Question 1

Distribution Systems

Answer 1

ways insurance products are marketed and sold to the public. Insurance can be purchased though licensed insurance producers, agents or brokers. Agents are either captive/career/independent. captive work for only one insurer. independent work for themselves or for several insurers non exclusively.

Question 2

career agency system

Answer 2

commercial insurers are able to established offices in certain location. career agents are recruited to work at these location. A general agent hires and trains new producers and supervises a number of other producers All produces under career agency system are captive agents

Question 3

Personal Producing General Agency System

Answer 3

PPGA agents work for an independent agency selling policies from several insurance companies. Primarily sell instead of recruit /train

Question 4

Independent agency system(American Agency system)

Answer 4

Independent agents represent a number of insurance companies under separate contractual agreements.

Question 5

Managerial System

Answer 5

Branch offices are established in several location. Instead of a general agent running the agency, a salaried branch manager is employed by the insurer. The branch manager supervisors the agents working out of that branch office. Insurers pay branch managers salary and bonus for sold insurance and new agents hired.

Question 6

MAss MArketing

Answer 6

Direct selling(or direct mail) mass marketing method where agents are not used. instead policies are marketed and sold though TV radio advertisements print sources and internet.