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9 Cards in this Set
- Front
- Back
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2 major types of insurers operating in Canada
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- private
- government |
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what are "proprietary" insurers?
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insurance companies which exist to make a profit or return on their investments.
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what are "non-proprietary" insurers?
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Organized for reasons other than profit. Owned and controlled by their policyholders. Their mandate is to secure insurance at as low a cost as possible.
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2 most common distribution systems used by insurers to sell their products
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- Independent Agency/Brokerage System
- Direct Writing System |
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what is an "Independent Agency/Brokerage" System? Owners... (3 points)
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- are not employees of insurers
- are responsible for payment of all expenses associated with the business - own the business they produce |
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what is a "Direct Writing" System? (3 points)
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- Producers are employees of the insurer
- Remuneration of producers may be on either a salary, commission, or combination - Insurer owns all business written |
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Purpose of the Insurance Bureau of Canada (IBC)
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- Collects insurance stats
provides actual analysis to member companies - drafts policy forms - manages inter-company agreements on claims settlements - monitors legislation - works with governments in the development of insurance legislation. - Consumer info (FACTS) |
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Purpose of the Insurer’s Advisory Organization (IAO)
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- provides insurers with risk inspection and advisory rating services.
- A loss control firm inspects thousands of commercial, industrial, and institutional buildings to ensure that fire safety and security standards are being met. - Operates a loss-control school. |
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Purpose of the Insurance Crime Prevention Bureau (ICPB)
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provides assistance to police authorities in the detection, investigation, and prosecution of insurance crimes (non-profit)
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