Which of the Following Statements About Managing General Agents Is

question 6

Multiple Choice

Which of the following statements about managing general agents is (are) true?
I.Managing general agents have become more important in insurance distribution over the past 20 years.
II.Managing general agents are vested with underwriting authority from an insurer.

• A)I only
• B)II only
• C)both I and II
• D)neither I nor II

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Definitions:

Variable Costs

Spendings that move in tandem with the level of output or number of sales.

Sales Dollars

The total revenue generated from the sale of goods or services before any expenses are deducted.

Break-Even Point

The production level or sales volume at which total revenues equal total expenses, resulting in no net loss or gain.

Contribution Margin

The difference between sales revenue and variable costs, which contributes towards covering fixed costs and earning profit.