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Independent Agency System
Independant agency owns the accounts, expiration list and the right to solicit policyholders for insurance.
Exclusive Agencies (Captive)
When an agent represents only one insurer or a group of related insurers. Self employed representative of the company.The insurer using exlusive/captive agents owns and controls the accounts.
Direct Writing System
The insurance company deals directly with the insured using its onw employees.
Direct Mail or Respone and Internet
When an Insurer markets directly to the customers and no agent is involved.
Relationship of Agent and Principal
An agent is appointed to represent an insurance company in regard to contracts with a third party.
Agent Responsabilites to the Insurer
Handles funds responsibly and ethically, keep records and remit premiums when due.
Agent Responsabilites to the Insurer
Avoid conflicts of interest
Agent Responsabilites to the Insurer
Follow insturctions and act within the scope of their contract
Agent Responsabilites to the Insurer
Agent has an obligation to share relevant information with the insurer
Agent Responsabilites to the Insured
Client places their confidence, fath or trust that an agent will secure the proper coverage and forward their premiums on to the insurer.
Agent Responsabilites to the Insured
Not conceal or misrepresent information
Agent Responsabilites to the Insured
Know what they are doing and continue to improve their knowledge
Agent Responsabilites to the Insured
Conduct business in a professional manner
Types of Authority of an Agent
Express Authority
a principal gives to the agent in wirting. Expressed in their contract.
Types of Authority of an Agent
Implied Authority
NOT in writing and not specifically expressed by the company.
Types of Authority of an Agent
Apparent Authority
impression that authority exists when it does not.
Producer's Responsibilites
Every producer (Agent, broker, solicitor) is an underwritier.
Underwriting Limitations
selects which applicants to insure, determines the price of coerage and dictates policy terms.
What are the four basic steps of the underwriting process?
  • Gather any necessary underwriting information
  • Make the underwriting decision
  • Implement the decision
  • Monitor the decision
Underwriter reviews the submitted application, gathers information and decides weahter or not to insure the risk.
Reviewing of the policy after it is in force. Especially at renewal
Types of Licensees
Insurance Agent
Person authorized by and on behalf of an admitted insurer to transact all classes of insurance other than life, disability or health insurace.
Types of Licensees
Insurance Broker
A person who for compensation and on behalf of another person transacts insurance with but not on behalf of an insurer.
Types of Licensees
Insurance Solicitor
Employed to aid an insurance agent or broker in transacting insurance.
Types of Licensees
Managing General Agent
Manages the transaction of all or one or more of the classes of insurance written by those insurers in that territory or the transactions therin by those insurers.
Types of Licensees
Collects charges or premiums, process claims, handle consumer complaints from residents of caliofnira. Works for an employer acting on behalf of employees.
Types of Licensees
Property and Casualty
Person authorized to act as an insurance agent, broker or solicitor for products such as but not limited to, auto, residental property, flood, earthquake and liability.
Types of Licensees
Personal Lines
authorized to act as an insurance agent broker or solicitor for the same products as a property and casualty except for commercial insurance products.
Types of Licensees
Additional Personal Lines Authorized Product Information
ONLY able to transact personal auto, recreational, property, inland marine, flood, and umbrella.
Types of Licensees
Insurance Adjuster
  • Investigates lost and stolen property
  • Investigating crimes
  • Securing Evidence to be used in completion of the claim
  • investigating personal reputation, lifestyle and affiliations of individuals
  • investigating cause of responsibilty for damage to perople or property
Type of Licensees
Insurance Adjuster
person who is compensated by and acts on behalf of an insured in negotiating the settlement of a claim or damage under any policy of insurance covering real or personal property. Work for a pee paid by the claimant NOT the insruance company.
Types of Licensees
Surplus Line and Special Surplus Line Broker
Appointmented by nonadmitted carriers to market and sell products of these carriers.
Types of Licensees
Life Agent Only and or AandH Agent
Authorized by and on behalf of a life, disability or life and disability insurer to transact those insurance. Life agents do not bind coverage but must submit applications to the company for underwriting.
Types of Licensees
Life and Disabillity Analyst
person who for a fee offers advice on a life or disability insurance contract.
Types of Licensees
Limited Lines Automobile Licensee
Connot charge fees and must be appointed by an insurer and may only sell automobile insrance.
Types of Licensees
Credit Insurance Licensee
Permits a busines to sell credit insurance and recieve a commission without have to be licensed as a life agent or property and casualty agent or broker.
Transaction of Insurance
Someone trying to sell insurance to another
Transaction of Insurance
dialogue intended to produce an agreement upon the sale of an insurance policy.
Transaction of Insurance
steps required to make an insurance contract legally valid.
Transaction of Insurance
Transaction of matters subsequent
serves the clients. Adding cars, deleting cars, taking payments
Define: Applications
document in which the applicant states face and answers questions regarding the insurance they want to purchase.
Define: Binders
Covering notes which provide temporary insurance, pending issuance of the contract.
Define: Certificates of Libaility Insurance and Evidence of Property Insurance
Certificate of insruance proves the insured has coverage that is currently in force.
Renewal Responsibillities
Is the continuation of coverage under an insurance policy beyond its roginal term. Insurer is responsible for cancelation.
Define: Suspense/Diary system
monitors and tracks client transactions and communications for the agent and serves as a reminder to follow up on policy changes. the agency's liability for losses suffered by the insured if the losses would have been covered by the changed policy.
Define: Lost Policy Release
A lost policy release is an agreement signed by the insured that relieves the insurer from liability under an insurance contract that has been misplaced, lost or is unavailable for another reason.
What is Errors and Omissions Insurance
Type of prefessional liability insurance for nonmedical professionals that pays for losses or the defense of lawsuites that might be filed against them.
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