The Agent and Authority Flashcards
4 types of insurance agents
- ) Independent Insurance Sales Agent
- ) Exclusive Agent
- ) General Agent
- ) Direct Writer
3 main responsibilities of an agent
- ) Follow the contract
- ) Use reasonable judgement and care at all times.
- ) Provide all necessary information and documentation to the insurer.
3 types of authority granted to the agent
- ) Express
- ) Implied
- ) Apparent
Who is an agent?
One who receives the authority to act on behalf of someone else. (via contract)
What does power to bind mean?
What the agent says or does can bind the insurer. Be CAREFUL!
Express Authority definition
Authority that is directly granted to the agent in writing via the agent’s contract.
Usually given to:
- sell policies
- collect premiums
- issue binders
- offer discounts (such as multi-policy discounts)
- cancel insurance
Implied authority definition
The indirect authority that the public reasonably believes the agent to have, based on the agent’s representations.
These representations include:
- portraying oneself as a representative
- wearing a name tag with company logo
- handing out company business cards
- words and actions that go ‘hand-in-hand’ with express authority and are usual in order to perform an agent’s duties.
Apparent authority definition
Indirect authority that is granted when the insurer does not correct its agent, even though the agent may be acting in error.
- Granted when the insurer doe NOT act.
- By not correcting the agent, the insurer implies consent.
Sales Agent receives authority to
sell
Insurance Adjuster receives authority to
settle claims brought against the insurer.
Independent Insurance Sales Agent is___ and can ___,___ and ___.
- self employed
- offer insurance from more than one company at the same time
- can compare and give rate quotes from different companies
- find a policy that best suites the customer
Independent Insurance Sales Agent is___ and ___, and can ___, ___ and ___.
- self employed
- commissioned
- offer insurance from more than one company at the same time
- can compare and give rate quotes from different companies
- find a policy that best suites the customer
The exclusive agent is aka ___, is ___, ___and ___.
- Captive Agent
- Commissioned
- Represents only one insurer and their policies.
- sells employer’s insurance products
The general agent works for ____, ____, ____and is ____.
- one insurance company
- supervises other exclusive agents
- trains other agents
- salaried
Direct writer is a _____ employee, ____, and _______.
- salaried
- works for only one company
- sells employer’s insurance products
