Chapter 8 - Role Of The Broker Flashcards

1
Q

Agent

A

Authorised by principal to bring it into relationship with a third party

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
2
Q

3 ways agent relationship arises

A

Consent
Necessity
Ratification

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
3
Q

Agent by consent

A

Express appointment

TOBAs

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
4
Q

Agent necessity

A

Entrusted with goods

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
5
Q

Agent ratification

A

Without authority

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
6
Q

Agent of the insured

A

Cover or placing

Making claims

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
7
Q

Agent of insurer

A

Can bind cover

Collects premium

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
8
Q

Duties of agent

A

Obedience
Personal performance
Due care and skill
Good faith

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
9
Q

Duties of principal

A

Remuneration - Paynent,

Indemnity - agent can claim any losses occurred in behalf

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
10
Q

Undisclosed principal

A

Allows agent to appear as acting on own behalf

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
11
Q

2 types of actual authority

A

Express- TOBA

Implied- might have to carry out action to fulfill requirement

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
12
Q

Apparent ostensible authority

A

Extent is not clear to third party

Broker may bind different insurance and would have to ratify

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
13
Q

Retail broker

A

Contact to client

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
14
Q

Wholesale broker

A

Contact to insurer

How well did you know this?
1
Not at all
2
3
4
5
Perfectly