RMIN 4000 Test 2 questions with 100%
correct answers
Stock Insurers - correct answer ✔✔a corporation owned by stockholders
Mutual Insurers - correct answer ✔✔a corporation owned entirely by the policyholders
Advance Premium Mutual - correct answer ✔✔one where the premiums charged are expected to cover
all claims and expenses
Assessment Mutual - correct answer ✔✔has the right to assess policyholders an additional amount if
the insurer's loss, investment, or expense experience is unfavorable
Fraternal Insurer - correct answer ✔✔a mutual insurance company that provides life and health
insurance to members of a religious faith, ethnic group, or social organization
Demutualization - correct answer ✔✔a mutual insurer is converted into a stock insurer
Mutual Holding Company - correct answer ✔✔a mutual insurer is reorganized as a holding company that
owns or acquires control of stock insurance companies that can issue common stock
Lloyd's - correct answer ✔✔not an insurer, but is the world's leading insurance market that provides
services and physical facilities for its members to write specialized lines of insurance
Nonadmitted Insurer - correct answer ✔✔an insurer not licensed to do business in the state
Reciprocal Exchanges (Inter-insurance Exchange) - correct answer ✔✔an unincorporated organization in
which insurance is exchanged among the members, subscribers)
, Blue Cross and Blue Shield Plans - correct answer ✔✔prepaid hospital and medical expense plans under
which health care services are provided to plan participants by member hospitals and physicians
Managed Care Plans - correct answer ✔✔medical expense plan that provides covered services to the
members in a cost-effective manner, which includes HMOs, PPOs, and POS plans
Captive Insurer - correct answer ✔✔an insurer owned by a parent firm for the purpose of insuring the
parent firm's loss exposures
Single-parent captive (pure captive) - correct answer ✔✔an insurer owned by only one parent, such as a
corporation
Association captive - correct answer ✔✔owned by several parents
Savings Bank Life Insurance (SBLI) - correct answer ✔✔life insurance was originally sold by mutual
savings banks in Massachusetts, New York, and Connecticut
Producers - correct answer ✔✔intermediaries who are licensed as agents/brokers and who sell most
insurance policies today
Agent - correct answer ✔✔someone who legally represents the principal and has the authority to act on
the principal's behalf
Broker - correct answer ✔✔someone who legally represents the insured even though he or she receives
a commission from the insurer
Surplus Lines Brokers - correct answer ✔✔plays a part in P&C insurance and they exist to assume risks
that licensed companies decline to insure or will only insure at a very high rate
Managing General Agent (MGA) - correct answer ✔✔a specialized type of "wholesale" producer that,
unlike "retail" producers, is vested with underwriting authority from an insurer
correct answers
Stock Insurers - correct answer ✔✔a corporation owned by stockholders
Mutual Insurers - correct answer ✔✔a corporation owned entirely by the policyholders
Advance Premium Mutual - correct answer ✔✔one where the premiums charged are expected to cover
all claims and expenses
Assessment Mutual - correct answer ✔✔has the right to assess policyholders an additional amount if
the insurer's loss, investment, or expense experience is unfavorable
Fraternal Insurer - correct answer ✔✔a mutual insurance company that provides life and health
insurance to members of a religious faith, ethnic group, or social organization
Demutualization - correct answer ✔✔a mutual insurer is converted into a stock insurer
Mutual Holding Company - correct answer ✔✔a mutual insurer is reorganized as a holding company that
owns or acquires control of stock insurance companies that can issue common stock
Lloyd's - correct answer ✔✔not an insurer, but is the world's leading insurance market that provides
services and physical facilities for its members to write specialized lines of insurance
Nonadmitted Insurer - correct answer ✔✔an insurer not licensed to do business in the state
Reciprocal Exchanges (Inter-insurance Exchange) - correct answer ✔✔an unincorporated organization in
which insurance is exchanged among the members, subscribers)
, Blue Cross and Blue Shield Plans - correct answer ✔✔prepaid hospital and medical expense plans under
which health care services are provided to plan participants by member hospitals and physicians
Managed Care Plans - correct answer ✔✔medical expense plan that provides covered services to the
members in a cost-effective manner, which includes HMOs, PPOs, and POS plans
Captive Insurer - correct answer ✔✔an insurer owned by a parent firm for the purpose of insuring the
parent firm's loss exposures
Single-parent captive (pure captive) - correct answer ✔✔an insurer owned by only one parent, such as a
corporation
Association captive - correct answer ✔✔owned by several parents
Savings Bank Life Insurance (SBLI) - correct answer ✔✔life insurance was originally sold by mutual
savings banks in Massachusetts, New York, and Connecticut
Producers - correct answer ✔✔intermediaries who are licensed as agents/brokers and who sell most
insurance policies today
Agent - correct answer ✔✔someone who legally represents the principal and has the authority to act on
the principal's behalf
Broker - correct answer ✔✔someone who legally represents the insured even though he or she receives
a commission from the insurer
Surplus Lines Brokers - correct answer ✔✔plays a part in P&C insurance and they exist to assume risks
that licensed companies decline to insure or will only insure at a very high rate
Managing General Agent (MGA) - correct answer ✔✔a specialized type of "wholesale" producer that,
unlike "retail" producers, is vested with underwriting authority from an insurer
