8 - Role of a Broker Flashcards
What is an agent?
The legal term for everyone who acts on behalf of another person
What express appointment is used in the London market for brokers?
Terms of business agreement (TOBA)
What type of agency is created when a client retrospectively agrees to a change in contract?
Agency by ratification
What are the five duties of the agent?
- Obedience
- Personal performance
- Due care and skill
- Good faith
- Accountability
What is apparent authority?
When a broker approaches an underwriter for more than what the principal initially thought they would
What is the first step in the role of the broker?
Initial enquiry from client
Why are brokers helpful when approaching insurers?
They know the market and can mix providers to complete full coverage.
If a client is using the Lloyds market, which other markets can be used for placement?
Any market without restriction
What document is used to present premium information?
LPANs - London Premium Advice Notes
What is a UMR?
Unique Market Reference - code given by brokers to a risk
What system is used for paying premiums to bureau companies?
XIS
What is a BID (Broker Insurance Document)?
A summary of the risk provided to the client by the broker, without providing a full MRC/slip
How quickly must details of cover be provided to the client?
Within 30 days
In what key way can brokers assist their clients in the claims process?
Negotiating with the insurers
What is the alternative to XIS in the claims process?
XCS - Xchanging Claims Services
