Premium Collections

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

Apparent Or Ostensible Auhority

Any representation made by the principle which induces a third party reasonably to believe that a particular person is an agent of the principle makes the principle liable for the agents actions.

This is know as apparent authorithy.The representation may be by words or by conduct;it must clearly indicate that the agent has authority to do a particular act on behalf of his principle,and the representation must be made to the person seeking to hold the principle liable.

Apparent authorithy is also known as authorithy by estoppel.Where one has so acted that form his conduct he leads another to believe that he has appointed someone to act as his agent and knows that the other person is about to act on that belief,he is estopped from denying the existence of the agency.An apparent authority is based on belief that the agent had the authority.Therefore ,a third party cannot rely on this plea if he had actual or contructive notice that in fact the agent had no authority,of if the circumstances should have aroused his suspicious.

What is Universal Agent?

A universal agent is one who has unlimited authority.He may do anything for his principal which the principal himself was competent to do.

What is General Agent?

A general agent is one who may do anything for his principal within the limits of a general authorithy conferred upon him..e.g an insurance agent who is authorized to canvass for new business but who could not normally grant policy loans and bind his principal.

What is special agent?

A special agent is one who is appointed to do a specific act or transaction,e.g a person appointed as a proxy to attend an an annual general meeting of company on behalf of the shareholder.

Implied Authority

The implied authority is not expressed to the agent either orally or in writing .

However such authority can be implied from the circumstances concerning the relationship between principle and the agent,and it is implied that agent.

• can carry out acts which are within the terms of his express authority;
• has authority to do anything which has necessary for,or incidental to carrying out of his expressed authority.
  

Usual Authorithy

When a agent carries on a particular trade or profession,his express and implied authorithy carry with them a usual authorithy.

Such authorithy enables him to perform acts which are usual in the particular trade or profession.On the other hand,if there are certain customs of a trade,he has actual authorithy to comply with such customs.Examples of usual authorithy may be given as follows:

• An investment manager with intructions to sell has a usual authorithy to sign a memorandum of the contract of sale on behalf of the vendor.
• A property agent who has authorithy to sign a contract on behalf of the owner.