18th May 2009
Confidentiality to the Insurance Prospect
In attempting to qualify a prospect completing a financial questionnaire, analyzing needs, etc., insurance agents are privy to an applicant's personal and financial information. Personal information about a cl...
18th May 2009
The Underwriting Process
Even though many insurance policies are issued on the basis of the application alone, it is still sound business to explain the underwriting process. The explanation of the underwriting process should include three "checks an...
18th May 2009
As the insurance professionals practice grows he/she will realize the importance of service. Frequently such service will involve advice on a broad spectrum of topics. In some cases, technical subject matters will arise. Obviously, in order to answer s...
18th May 2009
Being a professional brings many rewards. Probably the most important reward is that the individual distinguished himself/herself from the other insurance population. Instead of clients regarding one as just being an agent placing policies (like countle...
18th May 2009
Without a doubt, the most important duty that an insurance professional has is to look out for the welfare of his/her clients. Even though an insurance agent technically is an agent of the insurance company, serving the best interests of the policy-owner...
08th May 2009
The Legal Relationship between a Broker and an Insurance Agent.
The role of a broker differs from that of an agent. A true broker is in the business of bringing insurance buyers and sellers together. A broker acts in the interest of the insurance ap...
08th May 2009
There are three areas of possible abuse concerning the fiduciary obligations that agents face. These situations are replacement, use of free look provision, and rebating.
Replacement
Replacement of previously purchased insurance may or may not be ...
08th May 2009
The agency agreement spells out the contractual obligation of an insurance agent to his/her carrier. Most importantly, the agency agreement establishes a fiduciary relationship between an insurance agent and the insurance company. The agent must always ...
08th May 2009
The agency contract will spell out clearly the express authority, which is granted to an insurance professional by the insurance company. The agency relationship, which binds the insurance company, can also be created by using implied authority, apparent...
08th May 2009
Insurance professionals are subject to state administrative rules and regulations and also to the legal concept of agency. We will cover the role of agency, with its associated topics of power and authority. Remember that an authorized agent has the powe...
26th April 2009
For many years, the study of ethics was left to the philosophers. Business people did not see the need and thus practiced "business as usual. There are three reasons why the insurance professional should study ethics:
- Penalties for unethical behav...
23rd April 2009
Unfortunately, our society is not always critical of wrongdoing. Society values wealth accumulation and ignores the means by which wealth has been gained.
One can see this emphasis on personal financial gain in the insurance industry as financial gai...
23rd April 2009
Moral codes controlling human behavior have existed for thousands of years. These standards have evolved, not only in moral codes, but also in conjunction with religious beliefs.
In ancient Egypt, precepts were established by secular leaders. Their ...
23rd April 2009
Probably one of the first rules most of us are taught is "do unto others as you would have them do unto you. This golden rule, whether taught by a parent, teacher or religious leader, is a cornerstone for many as it serves as a practical guide to everyda...
10th April 2009
Of course Variable Annuities share many of the same provisions other annuities, but there are some provisions that are unique to the VAs that should be known to the agent.
Fixed Account? It is about half "Yes" and half "No." Of course this is of prime ...
