AINS Practice Exam Review | with Complete Solution

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One distinguishing feature between independent agency systems and other marketing systems is the... - ✔✔agency expiration list Foreign Insurer - ✔✔An insurer licensed to operate in a state b... ut incorporated in another state Domestic Insurer - ✔✔An insurer doing business in the jurisdiction in which it was incorporated Alien Insurer - ✔✔An insurer domiciled in a country other than the US Direct Response Marketing System - ✔✔Greatly reduces compensation costs but has higher advertising costs Agency Expiration List - ✔✔An agency's most valuable asset (does not belong to insurer) Important consideration when selecting distribution channels - ✔✔Does the channel capitalize on its core capabilities? Knowledge acquired by the agent is presumed to be.. - ✔✔knowledge acquired by the insurer Premium collection method used for personal insurance and small commercial accounts - ✔✔Direct Bill What specifies scope of authority of an agent? - ✔✔Agency contract Agency Bill - ✔✔Payment procedure in which a producer sends premium bills to the insured, collects the premium, and sends the premium to the insurer, less any commission Item Basis - ✔✔Premium (less commission) is forwarded to the insurer when the producer collects it or when it comes due. Least complex method Statement Basis - ✔✔Insurer sends statement to the producer showing the premiums due. Producer is obligated to pay the premiums as due [Show More]

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