Distribution Systems - Section 2 Flashcards
Independent agencies/agent
Appointed to represent several insurers. Self - employed
Exclusive/captive agencies/agent
appointed to represent a single insurer or a group of related insurers. Self employed
Direct writer
Uses sales representative who are considered employees, not self-employed
Direct mail/response
no agent
Agents actions
Insurer’s principal’s actions
Producers
agents, brokers, solicitors = field underwriters
Property & Casualty or Personal Lines Licenses can transact as an :
agent, broker or solicitor, depending on the type of appointment on file with the department of insurance and the relationship/contract with the insurer
Solicitor’s license
There is NO solicitor’s license
- solicitor is a position that can be held with a property & casualty or personal lines license
3 types of authority
1 - express authority
2- implied authority
3- apparent authority
Express authority
explicit, definite agreement (WRITTEN)
Implied authority
not expressly granted under an agency contract, but it is actual authority that the producer has to transact (NOT WRITTEN)
Apparent authority
the authority a producer seems to have because of certain actions taken on his or her part
Preselection
Preselect good risks
-producer should disclose all material info to insurer on the application so home office underwriter can make a fair underwriting decison
Post-selection
underwriter evaluates and rates a risk based on information in the application as well as other sources
-after prospective insured is chosen by the producer and the app is submitted, the home office underwriter begins the process of posts election
Life - only agent
- Life insurance
- Accident and health insurance
- Life and accident and health insurance
Accident & health agent
act on behalf of insurance coverage for sickness, bodily injury or accidental death and may include benefits for disability income
Life and disability insurance analyst
for a fee, advises advise any person insured under named as beneficiary of or having any interest in, a life or disability insurance contract
Insurance agent
person authorized, by and on behalf of the insurer to transact all classes of insurance other than life, disability or health insurance
Life license
person authorized to act on behalf of a life insurer or disability insurer to transact life insurance, accident and health insurance and life and accident and health insurance
Insurance broker
Person who for compensation transacts insurance other than life, disability or health insurance