A quick question with regards to Insurance agency agreements?

Question

In the absence of an agency agreement, when is an agent required to render an account for money held on behalf of his or her Principal?

The possible answers are:

1) At the end of the financial year

2) Periodically at their own discretion

3) Whenever the Principal requires it

4) At the end of the Principal's financial year

Any help on this subject will be greatly appreciated.

Thankyou

Answer 1

3

The principal has to pay HIS companies on accounts written - so, normally 15 days into the month after the policy was sold - on agency billed accounts.

If it were a "direct bill" policy - the agent should be required to pay when the application is submitted.

Good luck and I hope this helps!

Answer 2

The answer would be 3)

However under FSA regulations there MUST be an agency agreement in writing to undertake insurance mediation activities.