Insurer Distribution Flashcards
_____– Deals with the insured through an exclusive or captive agent.
Agent represents solely one company or group of companies having common ownership
Insurer retains ownership rights to the business written by the agent
The agent is an employee or a commissioned independent contractor
Insurer may or may not provide office and agency support services
Exclusive or Captive Agency System
______-
Producer or Agent is an employee of the insurer
Insurer owns the accounts
The agent may be paid a salary, salary+bonus, or commission
Direct Writing System
______-
An agent or agency that enters into selling agreements with more than one insurer. It may represent an unlimited number of insurers
Agency retains ownership of the business written
An independent contractor that is paid a commission and covers the cost of agency operations
Independent Agency
_____– Agents are recruited, trained and supervised by either a managing employee or General Agent who is contracted with the insurance company.
Career Agency System
_____ -
Does not recruit career agents.
Sells insurance for carriers it is contracted with and maintains its own office and staff.
Personal Producing General Agent
_____-
Insurers who sell insurance policies directly to the public with licensed employees or contractors
A marketing system utilizing mass media, such as direct mail, newspapers, magazines, radio, television, internet, web sites, call centers and vending machines
Direct Mail or Direct Response Company
_____-
Used to target a specific type of insurance to a large group of individuals, such as the American Association of Retired People (AARP)
Insurer may benefit by reductions in marketing costs and underwriting expenses may be lower when offering coverage to a limited population.Mass marketing uses the direct response or direct mail method to reach its targeted audience.
Associations may receive some financial benefit from allowing an insurer to market directly to its membership
Mass Marketing
