Term
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Definition
| The number of firms in the financial services industry have declined due to mergers and acquisitions |
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Term
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Definition
| financial institutions can now sell a wide variety of financial products that earlier were outside their core business area |
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Term
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Definition
| a corporation owned by stockholders |
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Term
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Definition
| a corporation owned by policyholders |
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Term
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Definition
| owned by the policyholders; there are no stockholders, and the insurer does not issue assessable policies |
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Term
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Definition
| the right to assess policyholders an additional amount if the insurer's financial operations are unfavorable. |
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Term
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Definition
| mutual insurer that provides life and health insurance to members of a social or religious group |
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Term
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Definition
| a mutual insurer is converted into a stock insurer |
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Term
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Definition
| a company that directly or indirectly controls an authorized insurer |
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Term
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Definition
| an insurer owned by a parent firm for the purposes of insuring the parent firm's loss exposures. |
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Term
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Definition
| someone who legally represents the principal and has the authority |
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Term
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Definition
| someone who legally represents the insured even though they receive commission from the insurer |
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Term
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Definition
| an insurer not licensed to do business in the state |
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Term
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Definition
| a special type of broker who is licensed to place business with a non admitted insurer |
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Term
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Definition
| The agent has authority to perform all incidental acts necessary to exercise the powers that are expressively given. |
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Term
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Definition
| Specific powers that the agent receives from the insurer |
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Term
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Definition
| Authority the public reasonably believes the agent possesses based on the actions of the principal. |
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Term
| Independent Agency System |
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Definition
| The agent is an independent business person representing several insurers |
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Term
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Definition
| The agent represents only one insurer or group of insurers under common ownership |
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Term
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Definition
| An insurer in which the salesperson is an employee of the insurer, not an independent contractor |
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Term
| Multiple Distribution Systems |
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Definition
| Uses several distribution systems by insurer |
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