Questions from study text - Chapter 6

Question 1

What are the three types of fund broker is likely to hold?

Answer 1

• broker funds;
• client assets; and
• insurer funds

Question 2

List four ways, other than by fee, in which a broker might be remunerated.

Answer 2

• commissions;
• volume overriders
• contingent commissions; and enhanced brokerage

Question 3

List three types of fee a broker might be paid.

Answer 3

administration, policy fees, fees for services to insurers and work transfer fees.

Question 4

Suggest four reasons why a broking firm may achieve sucess in new business.

Answer 4

• A strong sales culture
• Effective sales process
• Good quality monitoring and management information
• The right incentivisation of staff
• The right staff
• Senior management support