Budget Chief Exec?

foggytown

raskazz wrote: »

Intermediaries can act as an agent of both the insurer or the insured depending on the particular function involved at the time.

As far as inception of the policy is concerned, and the associated commission, intermediaries such as Budget are agents of the insurer not the insured (as they have binding authority arrangements with the insurers on its panel - whereas Confused, for example, does not have any binding authority - they do not issue cover notes, etc).

Budget is not a 'captive agent', more a 'multi-tied' agent.

But they can't act as an agent for both the Insured AND the Insurer at the same time, can they? (I would sense a slight conflict there!)

OK, so if an intermediary is acting as agent for the policyholder then they would be required to disclose commissions if requested. If they are acting as agent for the Insurer(s) then they aren't required to. That it? But where do they pin their flag to the wall and declare which they are when I obtain a quote or buy a policy through their site?

FoggyTown

raskazz

foggytown wrote: »

But they can't act as an agent for both the Insured AND the Insurer at the same time, can they? (I would sense a slight conflict there!)

Corrrect. In theory the intermediary can act as agent for the insured or insurer at any one time depending on what functions they are carrying out at that particular time.

However, where the intermediary has been granted 'binding authority' or 'delegated authority' (i.e. the ability to confirm cover and issue covernotes) by the insurer then as a general rule they act as the agent of the insurer.