Agent
one who receives the authority to act on behalf of someone else
Sales agent
Contracted to sell and service insurance policies on behalf of the insurer
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6 Ways to Show Appreci...
Adjuster Pro, Section 2 WITH
100% CORRECT ANSWERS 2024
Agent - answer one who receives the authority to act on behalf of
someone else
Sales agent - answer Contracted to sell and service insurance policies on
behalf of the insurer
Adjusters - answer Contracted to settle claims that arise against the
insurer
Power to bind - answer What the agent says or does can bind the insurer
Agents should take the utmost care in what they do and say
Even if the agent makes mistakes, the insurer may have to accept them
Responsibilities of an Agent - answer Adhere to or follow the contract
Use reasonable judgement
Provide all necessary information and documentation to the insurer
Three types of authority - answer express, implied, apparent
Express Authority - answer Authority directly granted to an agent via the
contract:
-sell policies
-collect premiums
-issue binders
-offer discounts
-cancel insurance
,Implied Authority - answer A form of indirect authority
The authority that the public reasonably believes the agent to have
-portraying self as a representative
-wearing a name tag with a company logo
-handing out company business cards
-words and actions that go hand in hand with express authority and are
usually in order to perform an agents duties
Apparent Authority - answer when the insurer does not correct its agent
even when the agent may be acting in error
-granted when the insurer does not act
-by correcting the agent, the insurer implies consent
The Four Types of Sales Agents - answer Independent agent
Exclusive agent
General agent
Direct writer
Independent agent - answer -self employed
-offer insurance from more than one company at a time
-they can compare and give rate quotes from different companies
-find a policy that suits the customer
Exclusive agent - answer -Also called captive agent
-Commissioned
-Represents only one insurer and only their policies
General agent - answer -works for one insurance company
-trains and supervises agent for that company
,Direct writer - answer -salaried employee
-works for one company
Claimant - answer an individual or business that makes a claim for
payment after a loss occurs
Claim Function - answer The part of the insurance contract that lets the
insurer fulfill its promises to the insured.
Adjusting - answer The process of comparing a claimant's losses to the
promises made in an insurance policy
Insurance adjuster - answer An agent who processes insurance claims for
a salary, a fee, or commission
Who does the adjuster work for? - answer -an insurer
-a private company
-an adjusting company (adjusting bureau)
-the claimant
*adjusters can work for the insured or the insurer*
Staff Adjuster - answer -employed by only one insurer
-salaried employees
-can work locally, regionally, or nationally
-also called "company" adjusters
-work for insurers such as State Farm, Nationwide Insurance, and Aetna
Independent Adjuster - answer - Also called "fee adjuster" or "bureau
adjuster"
- Not contracted to any particular insurer
- Self-employed
, - Processes claims, sometimes for multiple insurers at the same time
- Paid by fee schedule, daily rate, or time + expense
- Sometimes paid on a commission basis (percentage of the final
settlement amount)
Public Adjuster - answer *Hired by policyholder (the claimant)
*Represents the policyholder in the claim
*Charges a commission, usually about 10% of settlement
*Hired when the insured knows the insurer will be making a payment for
the claim
*Helps determine the proper identification & valuation of a loss
*Specializes in appraising & negotiating claims
Emergency Adjuster - answer -temporarily licensed by insurance
commissioner when there is a catastrophe
-may be adjusters from other states
-may be an individual who is temporarily certified by an insurer to adjust
claims
-only allowed to work on claims related to the disaster.
An insurance adjuster - answer -acts as the Fiduciary Agent
-has the power to bind
-must report to the principal
Fiduciary Agent - answer The Adjuster acts as a fiduciary Agent for the
principal (insurer).
In order to be a fiduciary Agent, an adjuster must:
-have authority granted by an insurer via a contract.
-act for, and on behalf of, the principal (the insurer).
-protect the principal's financial and property interests.
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