Personal Selling Distribution Systems
Agent
Stock Insurer
Mass Merchandising
Independent Agency system
Exclusive Agency System
Multiple Distribution Systems
Surplus Lines Brokers
Demutualization
Non-admitted Insurer
a distribution system in which commissioned agents solicit and sell life insurance products to prospective insureds.
someone who legally represents the insurer, has the authority to act on the insurer's behalf, and can bind the insurer (principal) by expressed authority, by implied authority, and by apparent authority.
insurance marketing method that refers to the use of several distribution systems by an insurer; for example, a property and casualty insurer may use the independent agency method and direct response system to sell insurance.
a term to describe the conversion of a mutual insurer into a stock insurer.
a corporation that issues insurance and is owned by stockholders.
type of property and casualty insurance marketing system, sometimes called the American agency system, in which the agent is an independent businessperson representing several insurers. The agency owns the expiration's or renewal rights to the business, and the agent is compensated by commissions that vary by line of insurance.
specialized insurance broker licensed to place business with a non-admitted insurer (a company not licensed to do business in the state)
type of insurance marketing system under which the agent represents only one company or group of companies under common ownership. In the property and casualty industry, insurers that use this marketing system are also called direct writers.
plan for insuring individual members of a group, such as employees of firms or members of labor unions, under a single program of insurance at reduced premiums. Property and liability insurance is sold to individual members using group insurance marketing methods.
an insurer not licensed to do business in the state.