Study Guide Topic 5

1. What is stock insurance company? What are the characteristics of stock

insurers?

2. What is mutual insurer? What are the characteristics of mutual insurer? Why
are some mutual insurers referred to as "assessment mutuals"?

3. The corporate structure of mutual insurers is changing rapidly. What are

current trends?

4. What is demutualization? What are the reasons for demutualization?

5. What is a fraternal insurer? What are the characteristics of a fraternal

insurer?

6. What is a reciprocal exchange? What are the characteristics of a reciprocal

exchange?

7. What is a Lloyd's of London? What are the characteristics of Lloyd's of

London?

8. What is a captive insurer? What are the characteristics of a captive insurer?

9. What is saving bank life insurance? What are the characteristics of a saving
bank life insurance?

10.What is insurance industry consolidation? What are the characteristics of

insurance industry consolidation? Can you give an example?

11.What is the intersection convergence? Can you give an example?

12.What is a binder in the agency scenario? What does it do?

13.What is a broker? What are the characteristics of a broker?

14.What is a surplus lines broker? What are the characteristics of a surplus lines
broker? What is surplus line? Can you given an example of surplus line?

15.What is demutualization? What are the characteristics of demutualization?

16.What is Blue Cross and Blue Shield? What are the characteristics of Blue
Cross and Blue Shield?

17.How life insurance is usually marketed? What are the characteristics of life
insurance marketing system? What is a financial planner? Can you give an
example of a financial planner? What is a financial institution distribution
system? Can you given an example of financial institution distribution
system?

18.What is a personal producing general agents? What are the characteristics of

a personal producing general agent? Can you give an example of PPGA?

19.What is a direct response system for marketing? What are the characteristics
of a direct response system?

20.What is an exclusive agency system? What are the characteristics of an

exclusive agency system? How is it difference from a broker?

21.What is an independent agency system? What are the characteristics of an

independent agency system?

22.What is a direct writer? What are the characteristics of a direct writer?

23.What is a direct response system? What are the characteristics of a direct

response system?

24.What is a worksite marketing? What are the characteristics of a worksite

marketing?

25.What is a mass merchandising? What are the characteristics of a mass

merchandising?

26.What is a personal-producing general agent? What are the characteristics of a

personal-producing general agent?

27.What is multiple distribution system? What are the characteristics of using

multiple distribution system?

28.What is a stock broker? What are the characteristics of a stock broker?