Cpcu 520 - Chapter 3 - Insurance Marketing And Distribution

Front 1

Producer

Back 1

Anyof several kinds of insurance personnel who place insurance and surety businesswith insurers and who represent either insurers or insureds or both.

Front 2

Captive Insurer

Back 2

A subsidiary formed to insure the loss exposures of its parent company and the parent's affiliates.

Front 3

Risk Retention Group

Back 3

A group captive formed under the requirements of the Liability Risk Retention Act of 1986 to insure the parent organizations.

Front 4

Market Intelligence

Back 4

Information gathered and analyzed regarding acompany's markets to improve competitive decision-making.

Front 5

Underwriting Cycle

Back 5

Acyclical pattern of insurance pricing in which a soft market (low rates,relaxed Underwriting, and Underwriting losses) is eventually followed by a hardmarket (high rates, restrictive underwriting, and underwriting gains) beforethe pattern again repeats itself.

Front 6

Focus Group

Back 6

Asmall group of customers or potential customers brought together to provideopinions about a specific product, service, need, or other issue.

Front 7

Predictive Analytics

Back 7

Statisticaland analytical techniques used to develop models that predict future events orbehaviors.

Front 8

Market Segmentation

Back 8

Theprocess of identifying and dividing the groups within a market that share needsand characteristics and that will respond similarly to a marketing action.

Front 9

Target Marketing

Back 9

Focusing marketing efforts on a specific group of consumers.

Front 10

Niche Marketing

Back 10

A type of marketing that focuses on specific types of buyers who are a subset of a larger market.

Front 11

Distribution System

Back 11

The necessary people and physical facilities to support the sale of insurance products and services.

Front 12

Agency Expiration List

Back 12

The record of an insurance agency's present policyholders and the dates their policies expire.

Front 13

Countersignature Laws

Back 13

Laws that require all policies covering subjects of insurance within a state to be signed by a resident producer licensed in that state.

Front 14

Managing General Agent (MGA)

Back 14

An authorized agent of the primary insurer that manages all or part of the primary insurer's insurance activities, usually in a specific geographic area.

Front 15

Direct Response Distribution Channel

Back 15

An insurance distribution channel that markets directly to the customer through such distribution channels as mail, telephone, or the internet.

Front 16

Affinity Marketing

Back 16

A type of group marketing that targets various groups based on profession, association, interests, hobbies, and attitudes.

Front 17

Cold Canvass

Back 17

Contacting a prospect without an appointment

Front 18

Loss Run

Back 18

A report detailing an insured's history of claims that have occurred over a specific period, valued as of a specific date.

Front 19

Agency Bill

Back 19

A payment procedure in which a producer sends premium bills to the insured, collects the premium, and sends the premium to the insurer, less any applicable commission.

Front 20

Direct Bill

Back 20

A payment procedure in which the insurer assumes all responsibility for sending premium bills to the insured, collecting the premium, and sending any commission payable on the premium collected to the producer.