End of Chapter - Law of Agency

Question 1

What is an agent?

Answer 1

A person who has the authority or power to act on behalf of another person, known as the principle
Agency can be created by agreement or consent, by ratification and by necessity

Question 2

Duties of an agent?

Answer 2

To obey the principles’ instructions, to exercise proper care and skill, to perform duties personally, to act in good faith and to account for monies received on behalf of the principle

Question 3

Imputed knowledge

Answer 3

Under the law of agency, any knowledge which the agent possesses is imputed to the principle - this is particularly important in relation to the duty of disclosure in non-consumer (business) insurance
The Insurance Act 2015 introduces a detailed section clarifying ‘knowledge of insured’

Question 4

Rights of an agent?

Answer 4

Remuneration and indemnity

Question 5

Agents authority?

Answer 5

Actual authority (express or implied) or apparent or ostensible authority

Question 6

How can agency be terminated?

Answer 6

Agreement, performance, lapse of time, withdrawal of authority, renunciation by the agent, death of principle or agent, bankruptcy, insanity or frustration