Insurance Agent and Knowledge

An agent who engages in personal selling requires product knowledge,market knowledge and knowledge of buying and selling techniques.

Let see three important skills..

• Product knowledge - Product knowledge is important because insurance consumers usually depend on agents to guide them on selection of appropriate poplicies that meets their needs and in matters relating to claims whenever loss occurs.
• Market Knowledge - Market knowlegde is particularlt important because an agent's liability to satify his customers needs depends to a large extent of his knowlege of the market.An agent with in depts knowledge of the market would be able to indentify the markets segmens could best satify the customers needs and at the same time earn a reasonable profits.
• Selling Tecniques - Last but not least ,a successful agent will need to have a knowledge of buying and selling tecniques used in the sale of insurance.
  

Insurance Brokers

The term insurance broker is defined as a person who,as independent contractor,carries on insurance broking business and includes a reinsurance broker.’

An insurance broker is an ‘agent’ who normally acts behalf of the insured and is normally acts on behalf of the insured and is normally not tied to any one insurer.His job is to advice his clients on the most suitable covers at the most economic cost.Brokers are deemed to be knowledge of covers available ant the rated charged.In addition to advising clients and placing business on their behalf,the brokers are remunerated through payment of brokerage which is usually percentage of the premium.

Insurance Agents

Insurance agent to mean ‘a person who does all or any of the following:

a.solicit or obtains a proposal for insurance on behalf an insurer;
b.offers or assumes to act on behalf of an insurer in negotiating a policy or
c.does any other act on behalf of an insurer in relation to the insurance ,renewal or continuance of a policy’.

Depending on the terms of the agency agreement,an insurance agent may be authorized to solicit insurance business,a collect premiums an issue covernotes on behalf of the insurance company.Insurance agent are remunerated through payment of commission by the insurers.

The insurance market

A market is a term used for describing the facilities for buying and selling product.An insurance market therefore refers to facilities for buying and selling insurance.Insurance ,in a broad sense,may include private insurance ,government compensatory scheme and Takaful business.In This chapter,The term insurance shall for practical purposes be confined to the market for private insurance.

Obligations Of The Principal

The principal has always the following duties towards his agents:

1. To pay remuneration and expenses as agreed ;or failing custom,to pay what is reasonable.




2. Indemnity the agent against consequences of any act lawfully done,within his authority,om behalf of his principal.

The Extent of the Agent Authorithy

Under the agency common system,an insurance agent is appointed by the insurer :-

a-For the primary purpose of canvassing for new business;

and

b- to carry out other tasks or duties as maybe required by the insurer from time to time and no other purposes.

As in other agency agreements,an insurance agent also has his own limits of authority.

Premium Collections

When payment of premium is made to an insurance agent,by the policyholder such payment is deemed to be payment to the insurer.Even if the insurance agent does not remit the said premium to the insurer,the insured still be on cover.On te other hand,if an unauthorized agent received money form the insured or the general public,he does not make the insurer liable for his misdeed.It is important to note that as long as the agent has not deposited the money with the insurance with the insurance company,he continues to be responsible to the policy holder.