Which of the following statements regarding the fiduciary duty of a producer is CORRECT?
A) An insurance producer may never receive money meant for the insurer.
B) Premiums may be kept in the producer's personal account.
C) All premiums received by an insurance producer must be held in trust and cannot be used for personal matters.
D) Up to $5,000 a month of premium money may be used for the producer's personal needs."
Ans: C) All premiums received by an insurance producer must be held in trust and cannot be used for personal matters.
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What is the relation between the customer retention (CR) and average customer life (N)?
A) CR=1/N B) CR=1+(1/N) C) CR=N/2 D) CR=(N-1)/2 E) CR= 1-(1/N)
Which statement about economies of scope is NOT true?
A) Economies of scope are often attained through programmable automation. B) Economies of scope bring together two competitive priorities–customization and low price. C) Economies of scope reflect the ability to produce multiple products more cheaply in combination than separately. D) Economies of scope reflect low capital intensity and high resource flexibility.