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● Marketing enables an insurance company to determine which products meets customer needs and then to sell and deliver those products to its customers. It is a process of identifying customers and their needs and then creating, pricing, promoting, selling and distributing products or services to meet those needs.

● A Producer is any person who sells insurance products for an insurance company. However, agent, broker, sales representative and other titles are also used to denote special category of producer.

MARKETING

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● The Legal Role of an Insurance Agent ● Agency● Principal● Agent

● Creation of the Agency Relationship ● An Agency Contract or Agency Agreement

● Responsibilities of the Agent to the Principal ● Loyalty● Obedience● Reasonable Care● Accounting● Relaying Information

MARKETING

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● Responsibilities of the Principal to the Agent● The Principal’s primary duty is to pay the agent for the

services performed.● The principal also has a duty to indemnify the agents

for any losses or damages suffered without the agent’s fault but arising out of agent’s acts on behalf of the principal.

● An important factor involved in this duty is exposure of insurance agents to Errors and Omissions claims, which might arise from agent’s negligent action.

MARKETING

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● Authority of Agents ● Express Authority

● Binding Authority (Binder – Temporary Contract – Written or Oral)

● Implied Authority (Collection of Premiums)

● Apparent Authority (Third Party’s Reasonable Belief)

● Insurance Marketing Systems● Independent Agency System (Independent Agent vs Broker, MGA’s)

● Exclusive Agency System● Direct writing System (Sales Representatives)

● Direct Response System● Mixed Marketing System

Microsoft Word Document

MARKETING

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● Compensation of Producers ● Sales Commissions● Contingent Commissions

● Marketing Management● Producer Supervision

● Marketing Representatives● Production Underwiters

● Producer Motivation● Product Management and Development

MARKETING

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● Regulation of Insurance Producers● Licensing Laws ● Unfair Trade Practices Laws

● Misrepresentation and false advertising● Tie-in-Sales● Rebating● Other deceptive practices

MARKETING

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MARKETING