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AINS 101 Practice Exam Review Questions and Answers 100% Tested
1. Onefdistinguishingffeaturefbetweenfindependentfagencyfsystemsfandfotherfmarketingfsys
temsfisfthe...:fagencyfexpirationflist
2. ForeignfInsurer:fAnfinsurerflicensedftofoperatefinfafstatefbutfincorporatedfinfanotherfstat
e
3. DomesticfInsurer:fAnfinsurerfdoingfbusinessfinfthefjurisdictionfinfwhichfitfwasfincorporate
d
4. AlienfInsurer:fAnfinsurerfdomiciledfinfafcountryfotherfthanfthefUS
5. DirectfResponsefMarketingfSystem:fGreatlyfreducesfcompensationfcostsfbutfhasfhigherfa
dvertisingfcosts
6. AgencyfExpirationfList:fAnfagency'sfmostfvaluablefassetf(doesfnotfbelongftofinsurer)
7. Importantfconsiderationfwhenfselectingfdistributionfchannels:fDoesfthefchannelfcap
italizefonfitsfcorefcapabilities?
8. Knowledgefacquiredfbyfthefagentfisfpresumedftofbe..:fknowledgefacquiredfbyfthefinsurer
9. Premiumfcollectionfmethodfusedfforfpersonalfinsurancefandfsmallfcommer-
fcialfaccounts:fDirectfBill
10. Whatfspecifiesfscopefoffauthorityfoffanfagent?:fAgencyfcontract
11. AgencyfBill:fPaymentfprocedurefinfwhichfafproducerfsendsfpremiumfbillsftofthefinsured,f
collectsfthefpremium,fandfsendsfthefpremiumftofthefinsurer,flessfanyfcommission
12. ItemfBasis:fPremiumf(lessfcommission)fisfforwardedftofthefinsurerfwhenfthefproducerfco
llectsfitforfwhenfitfcomesfdue.fLeastfcomplexfmethod
13. StatementfBasis:fInsurerfsendsfstatementftofthefproducerfshowingfthefpremi-
fumsfdue.fProducerfisfobligatedftofpayfthefpremiumsfasfdue.
14. AccountfCurrentfBasis:fProducerfperiodicallyfpreparesfafstatementfshowingfthefpremium
sfdueftofthefinsurer,fafterfdeductingfappropriatefcommissions,fandftransmitsfthefamountftofthef
insurer.fThefagencyfcontractfwillfindicatefhowfoftenfthefproducerfmustfsubmitfthefaccountfcurr
entfstatementf(usuallyfmonthly).fProducerfmustfpayfwhenfpremiumfisfdue,fevenfiffpolicyholderf
hasn'tfpaid.
15. Purposesfoffunderwriting:fDevelopfandfmaintainfafbookfoffbusiness,fguardfagainstfadver
