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11 Cards in this Set

  • Front
  • Back

What is an example of an agent in insurance?

Broker - intermediary act on behalf of principal to bring the principal into a contractual agreement with a third party.

What is Agency by consent?

Both parties enter into a legally enforceable agreement.

What is Agency by necessity?

Entrusted with looking after someone's goods. Emergency situation has to act inadvertently certain way

What is Agency by ratification?

Agent acts outside the agency agreement terms. But principal accepts the act after the event

Who does the broker work for?

The insured and the insurer. They are an independent adviser.

Who takes responsibility for the brokers actions?

Insurer

When is a brooker an agent of the insured?

Giving advice on cover or the placing of insurance.




Advising the insured how to make a claim

When is an intermediary an agent of the insurer?

Collecting premiums



Pay claims on insurers behalf



Surveys the property

What are the duties of an agent?

Obey terms



Perform duties (no delegation)



Due care and skill (duty of care to client)



Accountability

What are the duties of a principal?

Remuneration - form of commission.



Indemnity - payment of properly incurred expenses incurred on principals behalf

What is a Principal?

Some one who gives authority to an agent to act on their behalf.