5 Rights and Duties of Insurance Agent
Obligations of an agency are:
-Comply with the instructions of the Principal
-To train caring and expertise
-Increasing Responsibility.
-Act based on good intentions to the Principal
-Calculate the beneficiary on behalf of the Principal.
5 rights and duties of insurance agent:
1. COMPLIANCE
An agent must comply with instructions from Principalnya, which are legal, reasonable, and will be liable for damages if the instructions were not implemented.
But an agent is not obligated to take any action that violates the law and futile action.
2. The CARE and EXPERTISE
The dealer must continue to improve awareness and skills in carrying out his duties as agent.
The level of care and expertise of an agency relies heavily on the situation and conditions. A and professionals must continue to raise awareness and much needed, where his expertise in carrying out his role. The person who declares himself has a lot of expertise when he was able to resolve the problems. Examples of Chaudhry vs. Prabakar (1988), an expert on the car very enthusiastically recommend her friend to buy a used car, which turned out to be not feasible according to insurance. He has been acting as an agent for his friend by suggesting buying a used car, but it does not show the concern and expertise.
3. PERSONAL PERFORMANCE.
Generally, an agent should not delegate its obligations to "Sub Dealer".
However, such delegation can be allowed when:
-The Principal expressly permits the Agent to delegate all or part of its obligations.
-Delegated tasks only besifat clerical and administrative obligations to employees.
-The Delegation with regard to community service.
-Delegation that it desperately needed.
At a delegation, Sub Agents Act on behalf of the Agency, not the Principal. So the Agency must provide compensation for the errors of Sub agencies and should also be responsible for the payment of a Sub agent.
The relationship between an agent and a Principal based on trust, and means it must be based on good intentions. An agent must not have any conflicts of interest with his Principal. If there is a problem, it should be submitted to the Principal. This means that there need be no transaction between the agent with the Principal as far as everything is already clear.
The dealer is not allowed to gain an advantage over a hidden function of the Agency. Example Hippisley vs. Knee Brothers (1905), an agent obtain a discount and printers, which he should pass on to the Principal. He uses the normal price and discounts made himself. Lucifero vs. Castel above, also describes a covert advantage. Based on the same principle that an agency may not earn commissions from both sides without notice in advance.
5. CALCULATE PAYMENT
An agent must calculate all the payments received by the Principal in accordance with the context of the task of the Agency. Finance and property between the agent and the Principal should remain separate
6. ACTIONS for INFRINGEMENT LIABILITY
Some actions that can be taken by the Principal if an agent fails to execute its obligations. For example the Principal can:
-Demanding legal Agents for losses due to breach of contract.
-In certain cases, demanding Agent over negligence (example: Agent forgot to return a property Principal).
-For heavy violations (such as accepting bribes, pictured above), fired the Agent without notice first and without compensation of any kind.
-Demand Agent to replace the bribes that are already given to agents
-If such breach be scams, so contracts are made through the agent was canceled, following his Commission.