Agents (Producers) & General Rules of Agency

  1. Agent and Insurer Relationship
    The insurance company is the agent's principal and the agent acts on behalf of the principal.
  2. Captive Agent
    An exclusive agent or direct writer that represents one company or several companies under the same management.
  3. Independent Agent
    Represents several different insurers.
  4. Express Authority
    Rights and powers of an agent explicitly provided in the agency contract.
  5. Implied Authority
    Consists of those actions that may extend beyond the rights and powers explicitly provided in the contract. Example: using the phone to make sales appointments.
  6. Apparent Authority
    Arises out of the impression the principal gives that the agent is authorized to act a certain way.  Agent can be held directly responsible.
  7. To act in the best interests of the applicant or insured, the agent should
    • Disclose all pertinent information concerning a proposed policy
    • Not misrepresent the terms or conditions of a proposed policy
    • And only make suitable recommendations—that is, recommendations that suit the customer's needs and situation.
Card Set
Agents (Producers) & General Rules of Agency
Lesson 3