Which of the Following Statements Is Correct About Exclusive Agents

question 29

Multiple Choice

Which of the following statements is correct about exclusive agents and independent agents?

• A)The compensation of independent agents is lower than those paid to exclusive agents.
• B)Like for independent agents, the customer is considered to be the exclusive agents' rather than the insurers.
• C)Unlike independent agents, exclusive agents do not own the x-date.
• D)The exclusive agent has as much independence as those who operate under the independent agency system.
• E)Average operating expenses and premiums for personal lines of insurance tend to be higher for exclusive agents than for those in the independent agency system.

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Definitions:

Service Department Costs

Expenses incurred by departments that do not directly produce goods but provide essential support services within a company.

Performance Evaluation

The systematic assessment of an employee's work performance using predetermined criteria to improve and manage performance.

Budgeted Fixed Costs

The projected amount of fixed costs for a certain period, used for planning and budgeting purposes.

Service Department

A service department refers to a division within a company that provides support services to other departments, rather than producing goods.