Legal Principles for Insurance Agents

TABLE OF CONTENTS

SECTION 1: YOUR ROLE AS AN INSURANCE AGENT	1
THE DUTY OF GOOD FAITH– WHY IT MATTERS	2
STANDARD CONTRACTS VERSUS INSURANCE CONTRACTS	3
A BRIEF HISTORICAL REVIEW OF UBERRIMAE FIDEI	6
UTMOST GOOD FAITH: PROMOTING TRUST AND TRANSPARENCY	8
APPLYING THE PRINCIPLE OF UTMOST GOOD FAITH	9
UTMOST GOOD FAITH: BREAKING THE TRUST	12
THE CONCEPT OF INFORMATION ASYMMETRY AND ADVERSE SELECTION	16
SECTION REVIEW	19
SECTION 2: THE ROLES OF INSURANCE REGULATION	20
THE PURPOSE OF INSURANCE REGULATION	20
A BRIEF HISTORY OF INSURANCE REGULATION IN THE UNITED STATES	21
PAUL V. VIRGINIA (1869)	22
US V. THE SOUTH-EASTERN UNDERWRITERS ASSOCIATION (1944)	23
MCCARRAN-FERGUSON ACT (1945)	24
INSURANCE REGULATION AND YOU	27
DETERMINING LICENSING REQUIREMENTS	28
SECTION REVIEW	40
SECTION 3: A CLOSER LOOK AT THE LEGAL PRINCIPLES FOR INSURANCE AGENTS	41
PRINCIPLES OF COMMON LAW: THE CONCEPT OF AGENCY	42
ACTUAL AUTHORITY	44
IMPLIED AUTHORITY	45
APPARENT AUTHORITY	46
THE DOCTRINES OF WAIVER AND ESTOPPEL	47
RATIFICATION	48
PRINCIPLES OF INSURANCE CONTRACT LAW	50
THE PRINCIPLE OF UTMOST GOOD FAITH	51
THE PRINCIPLE OF INSURABLE INTEREST	51
THE PRINCIPLE OF INDEMNITY	52
THE PRINCIPLE OF SUBROGATION	54
THE PRINCIPLE OF CONTRIBUTION	55
THE PRINCIPLE OF PROXIMATE CAUSE	56
THE PRINCIPLE OF LOSS MINIMIZATION	57
CONCEPTS OF CIVIL LAW: LEGAL LIABILITY	60
WHAT IS THE BASIS FOR LEGAL LIABILITY	61
TORT LIABILITY: NEGLIGENCE, STRICT LIABILITY, AND INTENTIONAL LIABILITY	61
CONTRACTUAL LIABILITY: ASSUMED LIABILITY AND WARRANTIES	64
SECTION REVIEW	67
SECTION 4: THE FUTURE OF INSURANCE REGULATION AND LITIGATION AND YOU	68
THE EFFECTS OF COVID-19-RELATED INSURANCE LITIGATION	69
THE POTENTIAL AND AVAILABILITY OF NEW FORMS OF PANDEMIC COVERAGE	71
CONCLUSION: SIGNIFICANT, BUT NOT RADICAL	73
SECTION REVIEW	75
COURSE REVIEW	76
SECTION 1: YOUR ROLES AS AN INSURANCE PROFESSIONAL	76
SECTION 2: THE ROLE OF INSURANCE REGULATION	80
SECTION 3: A CLOSER LOOK AT THE LEGAL PRINCIPLES FOR INSURANCE AGENTS	84
SECTION 4: THE FUTURE OF INSURANCE REGULATION AND LITIGATION AND YOU	88
REFERENCES	91

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