Which of the following is an example of a producer’s fiduciary duty?
The trust that a client places in the producer in regard to handling premiums
. – An agent acts in a fiduciary capacity, based upon trust and confidence, when handling the financial affairs of their customers, including the handling of premiums.
What is an insurance producer’s fiduciary duty?
It means
fully knowing the insurer’s products and services and applying them to best suit clients’ needs
. Producers must follow their company rules for field underwriting and policy delivery. They must not accept or bind the insurer to any risk or obligation that runs counter to the company’s interest or intent.
Is an insurance producer a fiduciary?
A fiduciary is
a person in a position of financial trust
. Attorneys, accountants, trust officers, pension plan trustees, stockbrokers and insurance agents are all considered fiduciaries. … Agents also must take the time to become acquainted with the client’s financial needs, situation and objectives.
Which of the following best describes an agents fiduciary capacity?
Which of the following best describes an agent’s fiduciary capacity?
Promptly forwarding premiums to the insurer
. The term fiduciary describes both the responsibility inherent in handling another person’s financial affairs, and the individual with such responsibility.
When an individual purchases insurance what risk management techniques is he or she practicing?
When an individual purchases Insurance, what risk management technique is he or she practicing?
Transfer
.
What means fiduciary duty?
Overview. When someone has a fiduciary duty to someone else,
the person with the duty must act in a way that will benefit someone else, usually financially
. The person who has a fiduciary duty is called the fiduciary, and the person to whom the duty is owed is called the principal or the beneficiary.
What is an example of rebating?
An example of rebating is
when the prospective insurance buyer receives a refund of all or part of the commission for the insurance sale
. Rebates can be made in the form of cash, gifts, services, payment of premiums, employment, or almost any other thing of value.
What is a fiduciary policy?
Fiduciary liability insurance is designed to protect the business from claims of mismanagement and the legal liability arising out of their role as fiduciaries. A fiduciary liability policy covers
associated legal costs to defend against claims of errors and a breach of fiduciary duty
.
Do insurance brokers get sued?
An insurance broker or agent can be liable to his insured client for failing to obtain the proper coverages and causing the insured client not to have insurance for his or her loss. A
broker can liable for either negligence or breach of contract
.
Is a fiduciary duty a legal duty?
They are required to comply with the terms of the contract, but are otherwise entitled to act in their own interests. Similarly, a party who owes a
duty
of care to another person is required to meet the required standard. … It is a
duty
of utmost good faith and the
duty
imposed upon a
fiduciary
is strict.
What are the three fiduciary duties?
The three fiduciary responsibilities of all board directors are
the duty of care, the duty of loyalty and the duty of obedience
, as mandated by state and common law. It’s vitally important that all board directors understand how their duties fall into each category of fiduciary duties.
What are the four fiduciary duties?
Breach of a fiduciary duty generally entitles the non-breaching partner(s) to a remedy. Fiduciary duties cannot be waived by agreement. California law recognizes four (4) fiduciary duties:
duty of care; duty of loyalty; duty of obedience; and, duty of good faith and fair dealing
.
What is an example of a fiduciary?
They include
lawyers acting for clients
, company executives acting for stockholders, guardians acting for their wards, financial advisors acting for investors, and trustees acting for estate beneficiaries, among others. An employee may have a fiduciary duty to an employer.
What is the most common risk transfer method?
The most common example of risk transfer is
insurance
. When an individual or entity purchases insurance, they are insuring against financial risks. For example, an individual who purchases car insurance is acquiring financial protection against physical damage or bodily harm that can result from traffic incidents.
What is an example of risk transfer?
Risk transfer is a risk management and control strategy that involves the contractual shifting of a pure risk from one party to another. One example is
the purchase of an insurance policy
, by which a specified risk of loss is passed from the policyholder to the insurer.
What are of examples of how can a firm reduce risk?
Risk can be reduced in 2 ways—through loss prevention and control. Examples of risk reduction are
medical care, fire departments
, night security guards, sprinkler systems, burglar alarms—attempts to deal with risk by preventing the loss or reducing the chance that it will occur.
