OTL C81 (Study 4) – Study Guide and Exam Preparation Material
What are intermediaries responsible for? - ✔✔Identifying insurance needs matching those
needs with products available and facilitating insurance contracts to the satisfaction of all
parties concerned
What is a general agent? - ✔✔One who is appointed by a company in a specific territory
Which agency only represents one company? - ✔✔Exclusive agency companies
What is law of agency? - ✔✔Applies when an agent is authorized to do something on behalf of
a principal
What are the two types of contracts? - ✔✔Express contract and implied contract
What are the responsibilities of intermediaries? - ✔✔- act within the terms of their contract
- to write only the classes of risks acceptable to the insurer, and not to exceeded the limits of
coverage authorized
- Collect premiums and hold these amounts in until they are remitted to the insurer
What is binding authority? - ✔✔To confirm to people who have submitted insurance
applications that they have insurance coverage
What is the difference between interim receipt and binder? - ✔✔Interim receipt: to ensure in
an agreed manner, while waiting for the completed policy to be issued
Binder: a written or oral agreement given by an insurer to ensure a risk pending the issuance of
a formal policy
What are intermediaries responsible for? - ✔✔Identifying insurance needs matching those
needs with products available and facilitating insurance contracts to the satisfaction of all
parties concerned
What is a general agent? - ✔✔One who is appointed by a company in a specific territory
Which agency only represents one company? - ✔✔Exclusive agency companies
What is law of agency? - ✔✔Applies when an agent is authorized to do something on behalf of
a principal
What are the two types of contracts? - ✔✔Express contract and implied contract
What are the responsibilities of intermediaries? - ✔✔- act within the terms of their contract
- to write only the classes of risks acceptable to the insurer, and not to exceeded the limits of
coverage authorized
- Collect premiums and hold these amounts in until they are remitted to the insurer
What is binding authority? - ✔✔To confirm to people who have submitted insurance
applications that they have insurance coverage
What is the difference between interim receipt and binder? - ✔✔Interim receipt: to ensure in
an agreed manner, while waiting for the completed policy to be issued
Binder: a written or oral agreement given by an insurer to ensure a risk pending the issuance of
a formal policy
