A business of which the owner is completely responsible for the administration of the business and for all the debts.
What is sole proprietorship
100
I am contracted by several insurance companies to provide their services to my clients
What is insurance broker
100
An event that will give rise to a loss. Often beyond a person's control.
What is a peril.
100
The 3 forms a brokerage/agency could take includes:
Sole Proprietorship
Corperation
...and this form of business.
What is a partership
200
This is paid annually to a broker/agent only if the business placed has produced a certain level of profitability.
What is profit commission
200
All-State and Co-operators employ a force of producers to sell policies directly to the public. They are an example of what type of company?
What is direct writing
200
What year was the first Canadian Insurance company founded?
When is 1809.
200
The 4 main areas of regulation are:
Qualification
Licensing
Operating requirements
...and this.
What is renew license.
300
This type of arrangement lacks specific terms and may result in disputes.
What is an implied contract
300
Why do brokers/agents require two seperate bank accounts for business.
What is a trust account to pay out insurers and an operating account for general business.
300
Construction of property, manufacturing processes, location in relation to water supplies for fire fighting, and the existence of fire alarms are all examples of what?
What is a physical hazard
300
Broker/agents licenses are examined in these 2 main areas:
Government regulation
... and
What is knowledge of the insurance business
400
This is the account where brokers/agents deposit premiums collected and from which insurers are paid for policies issued.
What is a trust account
400
What are the four main areas of concern in regards to the regulation of intermediaries?
What is qualification, licensing, operating requirements, and renewal of license.
400
The total amount the insurer could become liable for under a policy
What is exposure.
400
Production is dependant on these factors:
Product knowledge
Production target
Time control
Curiosity
... and this factor that looks for new business to replace lost clients and provides growth.
What is prospecting and selling
500
This person has the authority from a company to manage business within their territory, settle claims, and to appoint others with a similar job title.
What is a general agent
500
Who licenses insurance agents/brokers?
Who is the provincial insurance regulator.
500
What are the six functions of insurance
What are spread risk, security, credit, capital, employment, loss prevention.
500
The advantages of an agency/brokerage in corperation form include:
Limited liability
Tax status
Easier raising of capital
... and this, which theoretically means the company can last forever.