Agent

Question 1

What are the three kinds of agents?

Answer 1

1. Employees of the insurance
2. Independent canvassers for one company
3. Brokers

Question 2

What must an agent have to bind an insurance company?

Answer 2

Actual or apparent authority.

Question 3

What are the requirements for apparent authority to exist?

Answer 3

1. There must be a reasonable belief on the part of the proposed insured that the person is acting as an agent
2. The insurance company must be responsible for this belief.

Question 4

What is the extent of the authority of an ordinary insurance agent who is responsible for canvassing proposals?

Answer 4

Obtaining proposals for submission to the principal insurance company and accepting premiums from the insured.

Question 5

When will the insurer be estopped from relying on facts entitling it to repudiate?

Answer 5

If the insurer has knowledge of facts entitling it to repudiate but issues the policy anyway.

Question 6

When will constructive knowledge arise?

Answer 6

In circumstances where the knowledge of the agent is imputed to the company.

Question 7

When will the knowledge of the agent be imputed to the company?

Answer 7

If the agent:
1. Acquired the knowledge in the course and scope of their employment
2. Was under a duty to communciate this to the insurance company

Question 8

What is the principle in the Dicks case?

Answer 8

1. Implied authority of an insurance agent is to be dealt with the same way in which implied terms in a contract are, therefore a term will only be implied if it is necessary to do so in order to given business efficacy to the contract.
2. For estoppel to operate against the company, it must be shown that the company represented by words/conduct that the agent had the necessary authority and that the insured acted to his prejudice, on the faith of such representation.