Insurance Concepts and Marketing Systems

Front

What is a stock insurer?

Back

A stock insurer is a corporation owned by stockholders with the objective to earn profit for stockholders by increasing the value of stock and paying dividends.

Front

Who elects the board of directors in a stock insurer?

Back

Stockholders elect the board of directors.

Front

Who bears all losses in a stock insurer?

Back

Stockholders bear all losses.

Front

Can a stock insurer issue an assessable policy?

Back

No, a stock insurer cannot issue an assessable policy.

Front

What is a mutual insurer?

Back

A mutual insurer is a corporation owned by the policy owners.

Front

Who elects the board of directors in a mutual insurer?

Back

Policy owners elect the board of directors.

Front

What benefits might policyholders receive in a mutual insurer?

Back

Policyholders may receive dividends or rate reductions.

Front

What are some changes in the mutual insurer marketplace?

Back

Changes include an increase in company mergers, demutualization, and the creation of mutual holding companies.

Front

What is Lloyd's?

Back

Lloyd's is the world's leading insurance market providing services and facilities for its members to write specialized lines of insurance.

Front

What is a reciprocal exchange?

Back

A reciprocal exchange is an unincorporated organization where insurance is exchanged among members, managed by an attorney-in-fact.