Role of gov. In the insurance industry Flashcards
1
Q
Role of federal government
A
Many insurers are regulated by federal
These insurers are monitored on an ongoing basis to ensure their financial stability
2
Q
Role of Prov. Government
A
Superintendent of insurance in each province
Responsible to administering the Insurance Act.
Monitors financial strength
3
Q
Fiduciary
A
One in charge of someone’s money
4
Q
Insurers and brokers are both fiduciaries
A
TRUE
5
Q
Fiduciary responsibility of insurers
A
Premiums paid are not earned until the expiry of the insurance policy
Held in trust
6
Q
Fiduciary Responsible of insurance broker
A
Commissions are not fully insured until expiry of the insurance
7
Q
Licensing and operations of insurance is under provincial control.
A
TRUE
