Agent
An agent is a person who negotiates, solicits and places a contract of insurance on behalf of the insurer (the principal) in exchange for compensation. The agent is usually required to deliver the policy contract.
On Riscario, the term "advisor" is used. Other synonyms for agent are financial advisor, financial planner, and field underwriter.
Learn about
Types of Agents
- career agents only sell the products of one company
- other agents (sometimes called "brokers") can sell products from different companies
Differences Between Types Of Distributors
- an agent's words and actions can bind the insurer whose product is being sold
| Item | Career Agent | Agent | Broker |
|---|---|---|---|
| Acts on behalf of | one insurer | multiple insurers | you (the client) |
| Sells products of | one insurer | various companies | various companies |
| Can bind insurer with words and actions? | yes | yes | no |
Licensing
Agents are licensed provincially. A license can be suspended for
- violating the Insurance Act or regulations
- omissions or misleading information on the licensing application
- fraud, incompetence, untrustworthy nature
Law of Agency
You can buy insurance without direct contact with the insurer. This is essential for financial services.
page revision: 26, last edited: 23 Sep 2007 21:27