Which of the Following Statements About the Exclusive Agency System

question 6

Multiple Choice

Which of the following statements about the exclusive agency system for marketing property and liability insurance is true?

• A)Exclusive agents typically have complete ownership of policy expirations.
• B)A higher commission rate is usually paid on exclusive agents' renewal business than on new business.
• C)Exclusive agents represent several different insurance companies.
• D)New exclusive agents usually start as employees and after a training period become independent contractors.

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Definitions:

Equal Payments

Regularly scheduled payments of the same amount over the term of a loan or lease, combining principal and interest components.

Compounded Annually

The process of adding interest to the principal sum of a loan or deposit once every year, resulting in exponential growth.

Annuity

A financial product that pays out a fixed stream of payments to an individual, typically used as an income stream for retirees.

Table Factors

Mathematical factors used in tables to simplify calculations for things like present values, loan repayments, or depreciation rates.