CH 5 Flashcards
Brokerage Agreement
A contract outlining the terms and conditions between a broker and insurance company.
Authority
The limits placed on a broker by an insurer regarding the types of risks they can accept.
Expiration Ownership
Broker’s right to manage client policies, sometimes challenged by insurers for unpaid premiums.
Agency Billing
Brokers handle billing clients and paying insurers.
Direct Billing
Insurance companies bill clients directly.
Commissions
Broker’s earnings, typically ranging from 10-20%, often tied to performance.
Termination Notice
Required period of warning before ending a brokerage agreement.
Hold Harmless Clause
Protects brokers from insurer liability.
PIPEDA
Personal Information Protection and Electronic Documents Act.
EDI Provisions
Liability for data loss during electronic transmission.
Profit Sharing Agreement
Incentivizes brokers by sharing profits based on performance conditions.
Business Volume
Level of insurance business generated by the broker.
IBNR Claims
Losses reported after the policy period.
Loss Definitions
Rules for categorizing and calculating insurance losses.
Insurance Market Selection
Choosing the right insurer to partner with.
Marketing Philosophy
The approach an insurer takes to promote its policies.
Claims Services
Methods used to process and manage insurance claims.
Policyholder Services
The support and assistance provided to policyholders.
Financial Stability
An insurer’s financial health and ability to pay claims.
Underwriting Procedures
Rules and processes for accepting or denying insurance applications.
Number of Insurers to Represent
The number of insurance companies a broker is best suited to have.
Attracting Insurance Appointments
Techniques for convincing insurance companies to work with a brokerage.
Broker-Insurer Relations
The quality of working relationships between brokers and insurers, key for success.
Channels of Communication
Methods used by insurers and brokers to connect and share information.
