FIN 3610 Assignment 3 Name_______________________
Please remember that you must do your own work. Any plagiarism will result in a grade of zero for all students involved. Please use your own words even if you are using the textbook for answers. Always provide a citation when a reference is used.
- Describe the basic characteristics of the following types of insurance:
- Stock insurers:
- Mutual insurers:
- Loyd’s of London:
- Reciprocal exchange:
- Explain the legal distinction between an agent and a broker.
- Briefly describe and explain the key features of the following distribution systems in the marketing of property and casualty insurance.
- Independent agency system:
- Exclusive agency system:
- Direct writer:
- Direct response system:
- Multiple distribution systems:
- Who owns the policy expirations or the renewal rights to the business under the independent agency system, and who owns these under the exclusive system?
- The number of life insurers has declined sharply during the past decade because of the increase in company mergers and acquisitions, demutualization of insurers, and formation of mutual holding companies.
- Why have mergers and acquisitions among insurers increased over time?
- What is demutualization?
- Briefly explain the advantages of demutualization of a mutual life insurer.
- What is a mutual holding company?