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11 Cards in this Set
- Front
- Back
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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. |
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What is Agency by consent? |
Both parties enter into a legally enforceable agreement. |
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What is Agency by necessity? |
Entrusted with looking after someone's goods. Emergency situation has to act inadvertently certain way |
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What is Agency by ratification? |
Agent acts outside the agency agreement terms. But principal accepts the act after the event |
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Who does the broker work for? |
The insured and the insurer. They are an independent adviser. |
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Who takes responsibility for the brokers actions? |
Insurer |
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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 |
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When is an intermediary an agent of the insurer? |
Collecting premiums
Pay claims on insurers behalf
Surveys the property |
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What are the duties of an agent? |
Obey terms Perform duties (no delegation) Due care and skill (duty of care to client) Accountability |
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What are the duties of a principal? |
Remuneration - form of commission. Indemnity - payment of properly incurred expenses incurred on principals behalf |
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What is a Principal? |
Some one who gives authority to an agent to act on their behalf. |
