Chapter 8- Role of the broker

Question 1

Agent

Answer 1

Authorised by principle to bring it into relationship with a third party

Question 2

3 ways agent relationship arises

Answer 2

Consent
Necessity
Ratification

Question 3

Agent by consent

Answer 3

Express appointment TOBAs

Question 4

Agent necessity

Answer 4

Entrusted with goods

Question 5

Agent ratification

Answer 5

Without authority

Question 6

Agent of the insured

Answer 6

Cover or placing. Making claims

Question 7

Agent of insurer

Answer 7

Can bind cover. Collects premium

Question 8

Duties of agent

Answer 8

Obedience
Personal performance
Due care and skill
Good faith

Question 9

Duties of principle

Answer 9

Remuneration- Payment, Indemnity- agent can claim any losses occurred in behalf

Question 10

Undisclosed principle

Answer 10

Allows agent to appear as acting on own behalf

Question 11

2 types of actual authority

Answer 11

Express- TOBA
Implied- might have to carry out action to fulfil requirement

Question 12

Apparent ostensible authority

Answer 12

Extent is not clear to third party. Broker may bind different insurance and would have to ratify

Question 13

Retail broker

Answer 13

Contact to client

Question 14

Wholesale broker

Answer 14

Contact to insurer