General Insurance PrinciplesCâu 195 / 474
Producers who are salaried or commissioned employees of one insurer, and who do not own the renewal rights to their accounts, belong to the:
a.independent agency system, where the agency owns its expirations
b.direct writer system, where the insurer employs the sales force
c.reciprocal system, where subscribers trade contracts directly
d.surplus lines system, where a broker places declined business
Giải thích
A direct writer employs its producers, and the accounts and their expirations belong to the insurer. An independent agency represents several insurers and owns its expirations, so it can move a client's business to another carrier at renewal. An exclusive or captive agency sits between the two: it represents one insurer but its producers are not employees.
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Câu hỏi liên quan cùng chủ đề
- The surplus lines market exists so that a risk can be:
- A primary insurer must cede, and the reinsurer must accept, every risk falling in a defined class. This arrangement is:
- Under the McCarran-Ferguson Act, regulation of the business of insurance is:
- A filed rate must be adequate, not excessive and not unfairly discriminatory. The rate itself is built from the expected loss cost plus:
- A producer offers to pay a client's first month of premium out of her own commission if the client signs today. This practice is:
- An insurer earns $10,000,000 of premium in a year and incurs $7,500,000 of losses on that business. Its loss ratio is:
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