Study 4: Sales and Distribution of Insurance: The Role of Intermediaries Flashcards
1
Q
what is a express contract?
A
where the terms of the arrangement have been specifically stated and agreed to by both parties either orally or in writing.
2
Q
what is a implied contract?
A
where the parties have acted in such way that it is understood that a principal agent relationship exist, even though no expressed statement may have been made by either.
3
Q
what is binding authority?
A
it is authority from the insurer to the intermediary to bind coverage on behalf of the insurers they represent, up to certain limits. insureds then have coverage prior to the POLICY being issued by the insurer.
4
Q
what is a cover note?
A
a document with insurance, or the insurance protection provided. (also a temporary proof of insurance)
