AINS 21 Chapter 4 Terms
Study online at https://quizlet.com/_hrx9on
1. Producer: Any of several kinds of insurance personnel who place insurance business with insurers and who
represent either insurers or insureds, or both.
2. Agent: In the agency relationship, the party that is authorized by the principal to act on the principal's behalf.
3. Agency: A legal, consensual relationship that exists when one party, the agent, acts on behalf of another party,
the principal.
4. Principal: The party in an agency relationship that authorizes the agent to act on that party's behalf.
5. Implied Authority: The authority implicitly conferred on an agent by custom, usage, or a principal's conduct
indicating intention to confer such authority.
6. Express Authority: The Authority that the principal specifically grants to the agent.
7. Actual Authority: Authority (express or implied) conferred by the principal on an agent under an agency
contact.
8. Binding Authority: An insurance agent's authority to effect coverage on behalf of the insurer.
9. Apparent Authority: A third party's reasonable belief that an agent has authority to act on the principal's
behalf
10. Independent Agency: A business, operated for the benefit of its owner (or owners) that sells insurance,
usually as a representative of several unrelated insurers.
11. Broker: An independent producer who represents insurance customers
12. Agency Expiration List: The record of an insurance agency's present policyholders and the dates their
policies expire.
13. Independent Agency Network: A group of agencies that contractually link to share services, re-
sources, and insurers to gain advantages normally available only to large regional and national brokers.
14. Managing General Agent (MGA): An authorized agent of the primary insurer that manages all or
part of the primary insurer's insurance activities, usually in a specific geographical area.
15. Exclusive Agency Marketing System: An insurance marketing system under which agents contract
to sell insurance exclusively for one insurer (or for an associated group of insurers)
16. Direct Writer Marketing System: An insurance marketing system that uses sales agents (or sales
representatives) who are direct employees of the insurer.
17. Mixed Marketing System: An insurer's use of more than one marketing system or distribution channel.
18. Cold Canvas: Contacting a prospect without an appointment
19. Loss Run: 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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Study online at https://quizlet.com/_hrx9on
1. Producer: Any of several kinds of insurance personnel who place insurance business with insurers and who
represent either insurers or insureds, or both.
2. Agent: In the agency relationship, the party that is authorized by the principal to act on the principal's behalf.
3. Agency: A legal, consensual relationship that exists when one party, the agent, acts on behalf of another party,
the principal.
4. Principal: The party in an agency relationship that authorizes the agent to act on that party's behalf.
5. Implied Authority: The authority implicitly conferred on an agent by custom, usage, or a principal's conduct
indicating intention to confer such authority.
6. Express Authority: The Authority that the principal specifically grants to the agent.
7. Actual Authority: Authority (express or implied) conferred by the principal on an agent under an agency
contact.
8. Binding Authority: An insurance agent's authority to effect coverage on behalf of the insurer.
9. Apparent Authority: A third party's reasonable belief that an agent has authority to act on the principal's
behalf
10. Independent Agency: A business, operated for the benefit of its owner (or owners) that sells insurance,
usually as a representative of several unrelated insurers.
11. Broker: An independent producer who represents insurance customers
12. Agency Expiration List: The record of an insurance agency's present policyholders and the dates their
policies expire.
13. Independent Agency Network: A group of agencies that contractually link to share services, re-
sources, and insurers to gain advantages normally available only to large regional and national brokers.
14. Managing General Agent (MGA): An authorized agent of the primary insurer that manages all or
part of the primary insurer's insurance activities, usually in a specific geographical area.
15. Exclusive Agency Marketing System: An insurance marketing system under which agents contract
to sell insurance exclusively for one insurer (or for an associated group of insurers)
16. Direct Writer Marketing System: An insurance marketing system that uses sales agents (or sales
representatives) who are direct employees of the insurer.
17. Mixed Marketing System: An insurer's use of more than one marketing system or distribution channel.
18. Cold Canvas: Contacting a prospect without an appointment
19. Loss Run: 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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