An Employee of an Insurance Company Who Completes a Proposal

question 38

Multiple Choice

An employee of an insurance company who completes a proposal form on behalf of an intending insured is acting as:

• A)an independent agent.
• B)the agent of the insured.
• C)a principal in his/her own right.
• D)the agent of the insurer.

Appreciate the capability of simulation to test policy changes without impacting real systems.

Identify the threefold idea behind simulation and its stages.

Acknowledge the variability and unrepeatability issues in simulations that rely on random numbers.

Understand different types of simulation, including Monte Carlo, and their characteristics.

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Definitions:

Market Shares

The portion of a market controlled by a particular company or product, often expressed as a percentage of total sales in the industry.

Competitive

Relating to or characterized by competition; having the ability or resources to compete successfully with others.

Imperfectly Competitive

A market structure characterized by few sellers, differentiated products, and barriers to entry, which does not meet the criteria of perfect competition.

Monopoly

A market structure characterized by a single supplier that has exclusive control over a good or service, potentially leading to higher prices and restricted output.