Chapter 8 - Role Of The Broker Flashcards
Agent
Authorised by principal to bring it into relationship with a third party
3 ways agent relationship arises
Consent
Necessity
Ratification
Agent by consent
Express appointment
TOBAs
Agent necessity
Entrusted with goods
Agent ratification
Without authority
Agent of the insured
Cover or placing
Making claims
Agent of insurer
Can bind cover
Collects premium
Duties of agent
Obedience
Personal performance
Due care and skill
Good faith
Duties of principal
Remuneration - Paynent,
Indemnity - agent can claim any losses occurred in behalf
Undisclosed principal
Allows agent to appear as acting on own behalf
2 types of actual authority
Express- TOBA
Implied- might have to carry out action to fulfill requirement
Apparent ostensible authority
Extent is not clear to third party
Broker may bind different insurance and would have to ratify
Retail broker
Contact to client
Wholesale broker
Contact to insurer