19.3.2 Agents' Responsibilities to the Principal
The insurance agent is the legal representative of a principal within an agency relationship and as such, they are considered fiduciaries. We've already learned what is meant by fiduciary responsibilities in Legal Concepts of the Insurance Contract. Remember, the acts of the agent are considered the acts of the principal, because of the fiduciary relationship. The following table points out what the agent owes the principal in the capacity of representation.
However, while fulfilling the obligations due the principal, the producer must also be aware of his responsibilities to his clients - the policyowners. In any conflict, the agent can often feel "in the middle" per se. Adhering to a professional ethical code can alleviate much conflict.
Is an insurance agency required to have an "Agent in Charge?"
Yes. Although an "Agent in Charge" does not have any specific statutory duties or responsibilities, a licensed agent must be designated to be "in full-time charge" of each licensed agency location.
