G4: Distributing Systems

Question	Answer
Direct Response	Marketing system where sales are made WITHOUT face to face meeting with prospect and salesperson. example: telemarketing
Managing General Agent (MGA)	Principal authorizes MGA to handle parts or all parts of insurers business in a given territory.
(memorize) MGA acts as an agent and produces and underwrites gross direct written premium equal to or more than 5%.	(memorize) MGA acts as an agent and productes and underwrites gross direct written premium equal to or more than 5%.
(memorize) MGA adjusts or pays claims in excess of an amount determined by the commissioner.	(memorize) MGA adjusts or pays claims in excess of an amount determined by the commissioner.
(memorize) MGA negotiates and binds ceding insurance on behalf of the insurer.	(memorize) MGA negotiates and binds ceding insurance on behalf of the insurer.
Home Service	distribution system in which an agent collects premiums and provides service at policy owners home within and assigned territory.
Non-insurance Sponsors	Companies that are not insurers and doesn't normally send insurance products.
Distributing Systems	1. Agency 2. Direct Response 3. MGA 4. Home Service
Agency	Principle=Company Principal appoints agents. Each party is deemed to know the same knowledge.
Exclusive (Captive)	Agent appointed by ONE company. Can only sell ONE companies products.
Independent	Agent that can sell multiple companies products.

Resource summary

	Created by Det Ferraris almost 11 years ago