General Insurance
What distinguishes a captive or career distribution system from an independent one?
Answer and explanation
Answer: B. A captive or career producer represents a single insurer, while an independent producer may place business with several. Licensing applies to both, servicing is ordinary in either, and the method of compensation varies within both systems.Source: PSI — New York DFS Insurance Candidate Information Bulletin — Outline, marketing and distribution systems
More general insurance questions
- Which set names the elements of a legal contract as the outline lists them?
- Which statement best explains why a life insurance policy is legally considered a conditional contract?
- Who owns a mutual insurance company?
- Why do insurers treat losses from flooding along a single river valley as difficult to write as an insurable risk?
- Why is a bet on a horse race not an insurable risk?
- Why is a life insurance policy classified as an aleatory contract?
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