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Agent and Insurer Relationship
The insurance company is the agent's principal and the agent acts on behalf of the principal.
An exclusive agent or direct writer that represents one company or several companies under the same management.
Represents several different insurers.
Rights and powers of an agent explicitly provided in the agency contract.
Consists of those actions that may extend beyond the rights and powers explicitly provided in the contract. Example: using the phone to make sales appointments.
Arises out of the impression the principal gives that the agent is authorized to act a certain way. Agent can be held directly responsible.
To act in the best interests of the applicant or insured, the agent should
- Disclose all pertinent information concerning a proposed policy
- Not misrepresent the terms or conditions of a proposed policy
- And only make suitable recommendations—that is, recommendations that suit the customer's needs and situation.