Term
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Definition
| Any of several kinds of insurance personnel who place insurance business with insurers and who represent either insurers or insureds, or both. |
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Term
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Definition
| In the agency relationship, the party that is authorized by the principal to act on the principal’s behalf. |
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Term
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Definition
| A legal, consensual relationship that exists when one party, the agent, acts on behalf of another party, the principal. |
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Term
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Definition
| The party in an agency relationship that authorizes the agent to act on that party’s behalf. |
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Term
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Definition
| Authority (express or implied) conferred by the principal on an agent under an agency contract. |
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Term
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Definition
| The authority that the principal specifically grants to the agent. |
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Term
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Definition
| The authority implicitly conferred on an agent by custom, usage, or a principal’s conduct indicating intention to confer such authority. |
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Term
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Definition
| An insurance agent’s authority to effect coverage on behalf of the insurer. |
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Term
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Definition
| A third party’s reasonable belief that an agent has authority to act on the principal’s behalf. |
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Term
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Definition
| A business, operated for the benefit of its owner (or owners) that sells insurance, usually as a representative of several unrelated insurers. |
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Term
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Definition
| An independent producer who represents insurance customers. |
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Term
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Definition
| The record of an insurance agency’s present policyholders and the dates their policies expire. |
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Term
| Independent agency network |
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Definition
| A group of agencies that contractually link to share services, resources, and insurers to gain advantages normally available only to large regional and national brokers. |
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Term
| Managing general agent (MGA) |
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Definition
| An authorized agent of the primary insurer that manages all or part of the primary insurer’s insurance activities, usually in a specific geographic area. |
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Term
| Exclusive agency marketing system |
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Definition
| An insurance marketing system under which agents contract to sell insurance exclusively for one insurer (or for an associated group of insurers). |
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Term
| Direct writer marketing system |
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Definition
| An insurance marketing system that uses sales agents (or sales representatives) who are direct employees of the insurer. |
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Term
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Definition
| An insurer’s use of more than one marketing system or distribution channel. |
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Term
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Definition
| Contacting a prospect without an appointment. |
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Term
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Definition
| A report detailing an insured’s history of claims that have occurred over a specific period, valued as of a specific date. |
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Term
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Definition
| A payment procedure in which a producer sends premium bills to the insured, collects the premium, and sends the premium to the insurer, less any applicable commission. |
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Term
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Definition
| A payment procedure in which the insurer assumes all responsibility for sending premium bills to the insured, collecting the premium, and sending any commission payable on the premium collected to the producer. |
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Term
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Definition
| A percentage of the premium that the insurer pays to the agency or producer for new policies sold or existing policies renewed. |
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Term
| Contingent commission agreement |
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Definition
| A contract provision in which an insurer agrees to make supple- mental payments to producers based on profitability alone or on a combination of profitability, volume, and growth in the agency’s book of business placed with that insurer. |
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