Jeopardy agency law insurance applications (2)


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  • Created for reinforcement training of concepts within CPCU 530 Business Law for Insurance Professionals
  • For disclosed and partially disclosed principals, the agent is liable for agreements made until the 3rd party elects to enforce the contract against the principal instead of the agent.
  • Jeopardy agency law insurance applications (2)

    1. 1. Contractual Insurance Parties Miscellaneous Rights Application 100 100 100 100 200 200 200 200 300 300 300 300 400 400 400 400
    2. 2.  Third party’s rights against an undisclosed principals are subject to two exceptions:
    3. 3. What is: The principal’s liability is limited to theagent’s actual authority, except that a 3rdparty cannot sue if:1. The principal for payment under contract if the principal made a good-faith settlement on the account with the agent2. the 3rd party expresses intention to hold the agent liable for the contract Home
    4. 4.  Undisclosed principal’s right against a third party are limited in these 4 circumstances.
    5. 5. What is:1. Agent Fraud,2. Enforcement would impose a substantial additional burden (“provide all that may be required”),3. Contract specifies agent’s personal performance, and4. In breach of contract suits a judgement against the agent destroys the undisclosed principal’s right of recovery against the 3rd party? Home
    6. 6.  These six situations create agent’s liability to a third party even when the principal is disclosed.
    7. 7. HomeWhat is:1. Agent breaches implied warranty of authority,2. Agents acts on behalf of minor/mentally incompetent person and the 3rd party is unaware that the principal cannot contract,3. Agent purported to act personally and did not disclose the principal,4. Agent voluntarily guarantees performance of principal under the contract, and5. Agent has no authority to collect money and does.6. Agent is liable for fraudulent or malicious acts even under principal’s direction?
    8. 8.  Agent’s right against a third party
    9. 9. HomeWhat is the agent can assert:1. Breach of contract when both agent and 3rd party agree the contract obligates the agent,2. Breach of contract when the principal is undisclosed (principal has superior right),3. Personal defenses that the principal or agent performed the contract, that the 3rd party failed to perform, or that the statue of frauds or limitations precludes recovery, and4. With disclosed/partially disclosed principal’s consent, the agent can assert the principal’s defenses against the 3rd party?
    10. 10.  A person or an entity that is employed to act for the principal in a specific transaction or only for a particular purpose or class of work?
    11. 11.  Who is a special agent? Home
    12. 12.  An insurance producer whose authority is limited by contract with an insurer to soliciting applications for insurance and performing other acts directly incident to those activities
    13. 13.  Who is a soliciting agent? Home
    14. 14.  An independent producer who represents insurance customers
    15. 15.  Who is a broker? Home
    16. 16.  An agent that transacts all of a principal’s business of a particular kind or in a particular place
    17. 17.  What is a general agent? Home
    18. 18.  Three ways to terminate producer authority
    19. 19.  What is specified in the contract? What is written or oral communication that severs the producer’s actual authority? What is notifying all parties that the producer relationship has ended, plus collecting all application forms and stationary? Home
    20. 20.  Temporary oral or written policies
    21. 21.  What are binders? Home
    22. 22.  Imputed knowledge
    23. 23. What is the insurer knew what the agentknew? Any knowledge possessed by a general or special agent is considered to be possessed by that agent’s principal Home
    24. 24.  These six components are essential for insurance contracts
    25. 25. What is:1. Subject matter of the insurance2. Loss exposures insured3. Premium4. Insurance contract duration5. Coverage amount, and6. Identities of parties? Home
    26. 26.  The liability of a principal who commits a tort against a third party
    27. 27.  What is direct liability? Home
    28. 28.  A wrongful act or an omission, other than breach of contract, that invades a legally protected right
    29. 29.  What is a tort?See chapter 6 Home
    30. 30. Two types of producer authority
    31. 31. What are:1. Actual authority (express or implied) and2. Apparent authority? Home
    32. 32.  Three roles that vary producer’s authority
    33. 33. What are: General agents (broadest authority) Special agent Broker Home