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Question 1: Which of the following statements is correct about exclusive agents and independent agents?
Select one:
a. The compensation of independent agents is lower than those paid to exclusive agents.
b. Average operating expenses and premiums for personal lines of insurance tend to be higher for exclusive agents than for those in the independent agency system.
c. The exclusive agent has as much independence as those who operate under the independent agency system.
d. Unlike independent agents, exclusive agents do not own the x-date.
e. Like for independent agents, the customer is considered to be the exclusive agents' rather than the insurers.
Question 2: Identify the ideal strategy for a hard market.
a. Reinsurance
b. Risk avoidance
c. Risk transfer
d. Self-insurance
e. Insurance with copayment
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