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What is the apparent authority of an insurance agent?
Apparent authority is a legal concept pursuant to which an agent can be found to have bound a principal (master) despite not having the actual authority to do so. If the principal gives to the agent certain indicia of authority (for example, business cards, a title, etc) that would lead a reasonable person to believe that the agent has the authority to bind the principal, and the principal did nothing to countermand it, the principal may be bound by the acts of the agent. This theory, put into the context of an insurer/insurance agent, is what is meant by the term.
How do you sign as Power of Attorney?
Disclose your identity as an agent whenever you act for the principal by writing or printing the principal's name and signing your own name as "agent" in the following manner: (Principal's Name) by (Your Signature) as Agent, or (Your Signature) as Agent for (Principal's Name).
If an agent has express authority he or she has?
The authority to act on behalf of the principal as specifically granted in a written or verbal agreement. This authority may be limited to certain tasks or actions as outlined by the principal.
Duties of an agent to his principal?
An agent owes fiduciary duties of loyalty, good faith, and fair dealing. An agent has to always prioritize the best interests of the principal, and must never act beyond his/her authority.
What is a substituted agent?
Sub-agent and substituted agent: The general rule is that an agent cannot delegate his authority and appoint another agent. (Delegatus non potest delegare). An agent being delegate cannot transfer his authority or duties to another. As per Section 190, an agent cannot lawfully employ another to perform acts which he has expressly or impliedly undertaken to perform personally unless by the ordinary custom of trade a sub-agent may or from the nature of the agency, the agent must be appointed. According to Section 191, a "sub-agent" is a person employed by and acting under the control of the original agent in the business of agency. The relation of the sub-agent and the original agent is as between themselves that of the agent and the principal. Where a sub-agent is properly appointed, the principal is so far as regards third parties represented by the sub-agent and is bound by and responsible for acts as if he were an agent originally appointed by the principal. The agent is responsible to the principal for the acts of the sub-agent. The sub-agent is responsible for his acts to the agent, but not to the principal except in case of fraud or wilful wrong. (Section192) There is no privity of contract between the sub-agent and the principal and, hence, sub-agent is not directly responsible to the principal except in cases of fraud or wilful wrong. If the sub-agent is properly appointed, the principal is liable to third parties for the acts of the sub-agent. If the sub-agent is appointed without proper authority, the principal is not represented by or responsible for the acts of the sub-agent and sub-agent is not responsible to the principal. As between the agent and the sub-agent, the relationship is that of the principal and agent and the agent is responsible for the acts of such sub-agent and both to the principal and to third parties (Section 193). Substituted agent: Where an agent holding an express or implied authority to name another person to act for the principal in the business of the agency has named another person accordingly, such person is not a sub-agent, but an agent of the principal for such part of the business of agency as is entrusted to him. (Section194). Where the agent has authority to appoint an agent and the person so appointed is in the nature of a substitute for the original agent, the contract arises between the principal and the substitute and the substituted agent becomes responsible to the principal for the due discharge of the duties as if he is appointed by the principal himself. According to Section 195, in selecting substituted agent for his principal an agent is bound to exercise the same amount of discretion as a man of ordinary prudence would exercise in his own case; and if he does so, he is not responsible to the principal for acts or negligence of the substituted agent so selected. Sub-agent and substituted agent: The general rule is that an agent cannot delegate his authority and appoint another agent. (Delegatus non potest delegare). An agent being delegate cannot transfer his authority or duties to another. As per Section 190, an agent cannot lawfully employ another to perform acts which he has expressly or impliedly undertaken to perform personally unless by the ordinary custom of trade a sub-agent may or from the nature of the agency, the agent must be appointed. According to Section 191, a "sub-agent" is a person employed by and acting under the control of the original agent in the business of agency. The relation of the sub-agent and the original agent is as between themselves that of the agent and the principal. Where a sub-agent is properly appointed, the principal is so far as regards third parties represented by the sub-agent and is bound by and responsible for acts as if he were an agent originally appointed by the principal. The agent is responsible to the principal for the acts of the sub-agent. The sub-agent is responsible for his acts to the agent, but not to the principal except in case of fraud or wilful wrong. (Section192) There is no privity of contract between the sub-agent and the principal and, hence, sub-agent is not directly responsible to the principal except in cases of fraud or wilful wrong. If the sub-agent is properly appointed, the principal is liable to third parties for the acts of the sub-agent. If the sub-agent is appointed without proper authority, the principal is not represented by or responsible for the acts of the sub-agent and sub-agent is not responsible to the principal. As between the agent and the sub-agent, the relationship is that of the principal and agent and the agent is responsible for the acts of such sub-agent and both to the principal and to third parties (Section 193). Substituted agent: Where an agent holding an express or implied authority to name another person to act for the principal in the business of the agency has named another person accordingly, such person is not a sub-agent, but an agent of the principal for such part of the business of agency as is entrusted to him. (Section194). Where the agent has authority to appoint an agent and the person so appointed is in the nature of a substitute for the original agent, the contract arises between the principal and the substitute and the substituted agent becomes responsible to the principal for the due discharge of the duties as if he is appointed by the principal himself. According to Section 195, in selecting substituted agent for his principal an agent is bound to exercise the same amount of discretion as a man of ordinary prudence would exercise in his own case; and if he does so, he is not responsible to the principal for acts or negligence of the substituted agent so selected.
What is the relationship between the insurance agent and the insurance carrier?
the agent is under the authority of the principal, or insurance carrier, and has the ability to make decisions as a representative of the carrier. Therefore, the principal can be held legally liable for the agent's business
What does the title of principal of a company mean?
In business, a principal is a person with primary authority and responsibility to make decisions. The principal is often an owner, operator, partner or high-ranking manager. In a principal-agent relationship, the principal also directs the actions of an agent who carries out activities for the organization.
What is the legal document in which principal sets forth the authority and duties of his agent?
It is referred to as an "agency agreement."
What is the difference between sub-agent and co-agent?
Section 191 of Indian Contract Act 1872 defines that "a sub-agent is a person employed by, and acting under the control of, the original agent in the business of the Agency." A sub-agent may be a properly appointed one or an improperly appointed one. Where an agent, having authority to do so, appoints a sub-agent, he is known as a sub-agent properly appointed (sec. 192.) Where an agent without authority appoints a sub-agent, he is called a sub-agent improperly appointed. ( sec. 193.)When a sub-agent is properly appointed, he can represent the principal as regards to third parties. There is no privity of contract between the sub-agent and the principal. The agent would be responsible to the principal for the acts of the sub-agent. In case of a fraud or willful wrong, the sub-agent is also directly responsible to the principal.When the sub-agent is improperly appointed, the principal is not bound by the acts of the sub-agent. The agent would be responsible to the principal and third parties.A "Co-agent" or a "substituted Agent" is a person who is appointed by the agent to act for the principal in the business of agency with the consent of the principal.Section 194 enacts, "where an agent holding an express or implied authority to name another person to act for the principal, names another person accordingly, he is not a sub-agent, but a substituted agent for the principal"
What is the difference between sub agent and substituted agent?
SUB AGENT.--------------Section 191 of Indian Contract Act 1872 defines that "a sub-agent is a person employed by, and acting under the control of, the original agent in the business of the Agency." A sub-agent may be a properly appointed one or an improperly appointed one. Where an agent, having authority to do so, appoints a sub-agent, he is known as a sub-agent properly appointed (sec. 192.) Where an agent without authority appoints a sub-agent, he is called a sub-agent improperly appointed. ( sec. 193.)When a sub-agent is properly appointed, he can represent the principal as regards to third parties. There is no privity of contract between the sub-agent and the principal. The agent would be responsible to the principal for the acts of the sub-agent. In case of a fraud or willful wrong, the sub-agent is also directly responsible to the principal.When the sub-agent is improperly appointed, the principal is not bound by the acts of the sub-agent. The agent would be responsible to the principal and third parties.SUBSTITUTED AGENT--------------------------A "Co-agent" or a "substituted Agent" is a person who is appointed by the agent to act for the principal in the business of agency with the consent of the principal.Section 194 enacts, "where an agent holding an express or implied authority to name another person to act for the principal, names another person accordingly, he is not a sub-agent, but a substituted agent for the principal"
Weather a principal can cancel the general power attorney with out giving notice to the agent?
A principal can certainly cancel the general power of attorney without giving notice to the agent, but if notice is not given the agent might continue to act upon the principal's behalf. If the agent does continues to act without being told he shouldn't his actions for the Principal will still be effective against the Principal and the agent will not be held to have done anything wrong. The problem is that the agent will be acting with "apparent authority", which will be just as binding on the Principal as if the POA had never been revoked.
Who is someone who authorizes another to act as agent?
A principal authorizes another person, known as an agent, to act on their behalf in certain transactions or duties. The agent is given the authority to make decisions and take actions as specified by the principal within the scope of their relationship.
