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If I am an Agent and I only have one Agreement with one Insurer and I can provide proof that I am covered by my Insurer for Professional Indemnity; do I still need a Professional Indemnity Insurance?

posted Jan 7, 2013, 12:36 PM by ICB Administrator

If you have one Agreement with one Insurer and they are extending their PI cover to include your Company then no you do not need a separate PI cover. However we do not recommend this practice as Professional Indemnity provides indemnity for the insurer against loss/circumstances incurred only as a result of their negligent act, negligent error or negligent omission in carrying out the policyholders business. If that negligent act is one done or caused by the Intermediary and the Insurance Company wishes to recover from the intermediary monies paid out in the event of a claim, they would have to sue the intermediary as they would not be able to recover on the PI cover as it is one cover shared by both.

If I am a Company with dual licences (Agent & Broker) I have Salesperson working for me and I have Sub-Agents as well, if a either of them come to me to place a business how do I place it ; as an Agent or Broker?

posted Jan 7, 2013, 12:34 PM by ICB Administrator

The choice of where to place the business is an ethical one; if the company having dual licences have (1) Sales persons and (2) Sub-Agents you will note that in the case of (1) Salesperson; they can only have one employer and whatever products you sell your salesperson can solicit for you, however you must be transparent and inform your Salesperson and their clients which hat (Agent or Broker) you are wearing when informing them of the placement of the insurance. In the Case of (2) Sub-Agent; this category can only have an agreement with an Agency; so in this case you are acting in the capacity of an Agent and within the parameters of the Agency  Agreement. You may not place any piece of business for the Sub-Agent as a Broker as this is not permissible in accordance to Section 123 (3) of The Insurance Act, 2005.

Can an agent or broker also be a consultant or perform the duties of a consultant?

posted Jan 7, 2013, 12:20 PM by ICB Administrator

Persuant to Section 121 (6) of The Insurance Act, 2005;
'No person carrying on business as an adjustor, consultant, or surveyor shall be registered as a salesperson, an agent, a sub-agent or a broker.'

What is an Agent?

posted Jan 7, 2013, 12:19 PM by ICB Administrator

Under The Insurance Act, 2005, the definition of an Agent is as follows;
“agent” means a body corporate appointed by a registered insurer and not being an employee of the insurer, who solicits applications for insurance, collects money by way of premiums and acting in accordance with the relevant agency agreement may bind the registered insurer for whom the agent acts in the issue of insurance cover;

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