Question: Concept of Agency

Answer: Insurance producers have ethical responsibilities to insurers, policy owners, the public, and the state. Duties of an insurance producer to the insurer are established by the concept of agency. This concept is tangibly represented by the agency contract, which both parties agree to and sign.

Question: Agency

Answer:

Question: Authority

Answer:

Question: Principal’s Responsibility

Answer: Duties of the principal to the producer:

1. A rule of agency law is that the principal (insurer) is responsible for all of a producer’s acts when the producer is acting within the scope of his authority.

2. Question: License Suspension/Termination

3. Answer: Producer’s license can be suspended or terminated for violating marketing ethics