RMIN 4000 Test 2 Daniel Brown UPDATED ACTUAL QUESTIONS AND CORRECT
ANSWERS
Stock Insurer Corporation owned by Stockholders (earn profit for stockholders by
increasing the value of the stock and paying dividends).
Mutual Insurer Corporation owned by Policyholders (profits are distributed to policyholders
by dividends or rate reductions).
Advance Premium Mutual
Assessment Mutual
Fraternal Insurer
Lloyd's of London Specialized lines of business.
Brokers represent policyholders to arrange coverage with syndicates. Legally represents
insured.
Syndicates Offer insurance contracts in the market.
Managing Agents Manage the syndicates, who typically specialize in certain lines.
Underwriters Work for the syndicates to assess risks and determine premiums.
Insurance Agent Someone who legally represents the principal (insurance company)
and has the authority to act on the principal's behalf (Company's Legal
Representative).
Insurance Binders Provide temporary insurance until the policy is actually written.
Surplus Lines Broker Licensed to place business with a nonadmitted insurer.
Surplus Lines Refer to any type of insurance for which there is no available market in
the state.
Nonadmitted Insurer An insurer not licensed to do business in the state.
Independent Agency Usually represents several unrelated insurers. Commission paid agents.
ANSWERS
Stock Insurer Corporation owned by Stockholders (earn profit for stockholders by
increasing the value of the stock and paying dividends).
Mutual Insurer Corporation owned by Policyholders (profits are distributed to policyholders
by dividends or rate reductions).
Advance Premium Mutual
Assessment Mutual
Fraternal Insurer
Lloyd's of London Specialized lines of business.
Brokers represent policyholders to arrange coverage with syndicates. Legally represents
insured.
Syndicates Offer insurance contracts in the market.
Managing Agents Manage the syndicates, who typically specialize in certain lines.
Underwriters Work for the syndicates to assess risks and determine premiums.
Insurance Agent Someone who legally represents the principal (insurance company)
and has the authority to act on the principal's behalf (Company's Legal
Representative).
Insurance Binders Provide temporary insurance until the policy is actually written.
Surplus Lines Broker Licensed to place business with a nonadmitted insurer.
Surplus Lines Refer to any type of insurance for which there is no available market in
the state.
Nonadmitted Insurer An insurer not licensed to do business in the state.
Independent Agency Usually represents several unrelated insurers. Commission paid agents.
