Chapter 2 Flashcards
A person authorized by a particular insurance company to sell their products
Insurance agent
A legal contract between an insurance company and an agent. It allows the agent to transact the company’s policies and act on their behalf
appointment
3 types of agent authority:
1.) Express
2.) Implied
3.) Apparent
What is express authority?
authorities written into an agent’s contract
What is apparent authority?
gives the impression that authority exists when it doesn’t necessarily
What is implied authority?
non-written authorities
2 types of insurance agents:
1.) Captive agent
2.) Non-captive agent
A person who works with more than one insurance company to find the right product for a particular customer
insurance broker
A person or entity who manages agents and policies
Managing General Agent (MGA)
Lying to a customer about the benefits/terms of your insurance policies is an example of…
misrepresentation
A type of insurance that agents purchase to protect against lawsuits that their customers might file against them
Errors and Omissions (E&O) insurance
door-to-door insurance salesman is an example of a…
home service
(usually) works at a specific company to help customers find and buy a policy
agent
