Explain what a direct writer company is. Explain what the independent agency system is
What will be an ideal response?
A direct writer company uses employee/agents to sell coverage. These agents are contacted by the mail or over the phone. Standard contracts are sold at typically a lower price. There may be low service levels. Most companies use the independent agency system to distribute insurance. An independent agent owns his own business, receives a commission for the sale and pays all expenses. There may be more service provided. Agents represent several companies.
You might also like to view...
Which of the following situations is a violation of the IIA's Code of Ethics?
a) knowing that management was aware of the situation, an internal auditor purposely left a description of an unlawful practice out of the final report b) an internal auditor shred an analytic audit technique with internal auditors from another organization c) an auditor discusses a significant issue with the vice president to whom the auditee reports prior to drafting the audit report d) an internal auditor, with the knowledge and consent of management, accepted an award from a customer of the organization for suggestions the auditor had made to improve the supply chain process; the award was a plaque and a gift certificated to a restaurant valued at $100 e) based upon knowledge of the probable success of the employers business, an internal auditor invested in a mutual fund that specialized in the same industry
Which of the following is considered the MOST significant advantage of implementing a continuous auditing approach?
A. It can improve system security when used in time-sharing environments that process a large number of transactions. B. It can provide more actionable audit results because of the increased input from management and staff. C. It can identify high-risk areas that might need a detailed review later. D. It can significantly reduce the amount of resources necessary for performing the audit because time constraints are more relaxed.