Author Question: Peggy is an independent insurance agent who places substantial amounts of business with XYZ ... (Read 69 times)

LaDunn · **on:** Jul 11, 2018

Peggy is an independent insurance agent who places substantial amounts of business with XYZ Insurance Company. XYZ pays Peggy a bonus when she meets a sales goal. XYZ also allows Peggy to recruit and train sub-agents.

She receives additional commissions based on the sales generated by the sub-agents. Based on this description, we can conclude that Peggy is a
A) direct writer.
B) personal producing general agent.
C) multiple line exclusive agent.
D) broker.

Question 2

Reciprocal exchange is managed by a corporation that is authorized to collect premiums, pay losses, invest funds, seek new members, and perform other functions. This corporate manager is called a(n)

A) holding company.
B) attorney-in-fact.
C) resident agent.
D) captive manager.