Busy. Please wait.
Log in with Clever

show password
Forgot Password?

Don't have an account?  Sign up 
Sign up using Clever

Username is available taken
show password

Make sure to remember your password. If you forget it there is no way for StudyStack to send you a reset link. You would need to create a new account.
Your email address is only used to allow you to reset your password. See our Privacy Policy and Terms of Service.

Already a StudyStack user? Log In

Reset Password
Enter the associated with your account, and we'll email you a link to reset your password.
Didn't know it?
click below
Knew it?
click below
Don't Know
Remaining cards (0)
Embed Code - If you would like this activity on your web page, copy the script below and paste it into your web page.

  Normal Size     Small Size show me how

Ch13 - fall 2014

insurers and agency systems

Mutual insurer Insurance company owned by the policy owners, who elect the board of directors. The board appoints managing executives, and the company may pay a dividend or give a rate reduction in advance to insureds.
Advance premium mutual Mutual insurer that does not issue assessable policies but charges premiums expected to be sufficient to pay all claims and expenses
assessment mutual Mutual insurer that has the right to collect additional money (above charged premiums) from policy owners for higher than expected losses and expenses
agent Someone who legally represents the insurer, has the authority to act on the insurer’s behalf
broker Often used to help companies find insurance, brokers legally represents the insured. They are still compensated by the insurer who wins the business
Agency building system Including the general agency system and the managerial system, it is used in life insurance by which an insurer builds its own agency force by recruiting, financing, training, and supervising new agents
general agency system Agency building system in which the general agent is an independent businessperson who represents only one insurer and is responsible for hiring, training, and motivating new agents
managerial system Agency building system where branch offices are established and the branch manager is an employee of the company with the responsibility of hiring and training new agents. The expenses of the office are paid by the insurer.
demutualization The conversion of a mutual insurer into a stock insurer
direct response system A method where insurance is sold without the services of an agent; potential customers are solicited by media advertisements
fraternal insurer a type of mutual insurer that provides life and health insurance to members of a social organization
Independent agency system A system in which the agent is an independent businessperson representing several insurers.
Lloyd’s of London Starting as a coffee shop, it is now the world’s leading insurance market that provides services and physical facilities for its members to write specialized lines of insurance
Non-admitted insurer Insurer used only when insurance cannot be obtained from an admitted insurer
Reciprocal exchange an unincorporated mutual in which insurance is exchanged among members and which is managed by an attorney-in-fact
stock insurer An insurance corporation owned by stockholders
Non-building agency system System by which a life insurer sells its products, not by building its own system of agents, but rather through established agents who are already engaged in selling life insurance or similar products
Personal producing general agent An above-average salesperson with a proven sales record who is hired primarily to sell life insurance under a contract that provides commissions
Surplus line broker Specialized broker licensed to place business with a non-admitted insurer
Created by: isufil250
Popular Insurance sets




Use these flashcards to help memorize information. Look at the large card and try to recall what is on the other side. Then click the card to flip it. If you knew the answer, click the green Know box. Otherwise, click the red Don't know box.

When you've placed seven or more cards in the Don't know box, click "retry" to try those cards again.

If you've accidentally put the card in the wrong box, just click on the card to take it out of the box.

You can also use your keyboard to move the cards as follows:

If you are logged in to your account, this website will remember which cards you know and don't know so that they are in the same box the next time you log in.

When you need a break, try one of the other activities listed below the flashcards like Matching, Snowman, or Hungry Bug. Although it may feel like you're playing a game, your brain is still making more connections with the information to help you out.

To see how well you know the information, try the Quiz or Test activity.

Pass complete!
"Know" box contains:
Time elapsed:
restart all cards