Concepts

2. Responsibilities to the Applicant and Insured

Although the agents act for the insurer, they are legally obligated to treat applicants and insureds in an ethical manner. Because an agent handles the funds of the insured and the insurer, he/she has fiduciary responsibility. A fiduciary is someone in a position of trust. More specifically, it is illegal for insurance producers to commingle premiums collected from the applicants with their own personal funds.

Market conduct describes the way companies and producers should conduct their business. It is a Code of Ethics for producers. Producers must adhere to certain established procedures, and failure to comply will result in penalties. Some of the market conduct regulations include, but are not limited to, the following:

• Conflict of interest;
• A request of a gift or loan as a condition to complete business; and
• Supplying confidential information.

Producers are required to perform in a professional manner at all times. Professionalism means that a person is engaged in an occupation requiring an advanced level of training, knowledge, or skill. Being professional means placing the public's interest above one's own in all situations. Any deviation could result in a penalty.

D. Contracts

A contract is an agreement between two or more parties enforceable by law. Because of unique aspects of insurance transactions, the general law of contracts had to be modified to fit the needs of insurance.

1. Elements of a Legal Contract

In order for insurance contracts to be legally binding, they must have 4 essential elements:

1. Agreement — offer and acceptance;
2. Consideration;
3. Competent parties; and
4. Legal purpose.

Offer and Acceptance

There must be a definite offer by one party, and the other party must accept this offer in its exact terms. In insurance, the applicant usually makes the offerwhen submitting the application. Acceptance takes place when an insurer’s underwriter approves the application and issues a policy.

Consideration

The binding force in any contract is the consideration. Consideration is something of value that each party gives to the other. The consideration on the part of the insured is the payment of premium and the representations made in the application. The consideration on the part of the insurer is the promise to pay in the event of loss.

Competent Parties

The parties to a contract must be capable of entering into a contract in the eyes of the law. Generally, this requires that both parties be of legal age (14 1/2 in New York), mentally competent to understand the contract, and not under the influence of drugs or alcohol.

Legal Purpose

The purpose of the contract must be legal and not against public policy. To ensure legal purpose of a Life Insurance policy, for example, it must have both: insurable interest and consent. A contract without a legal purpose is considered void, and cannot be enforced by any party.

2.对申请人和被保险人的责任

虽然代理人为保险公司行事，但他们在法律上有义务以道德的方式对待申请人和被保险人。由于代理人处理被保险人和保险人的资金，他/她负有信托责任。受托人是信任的人。更具体地说，保险生产者将从申请人那里收取的保险费与他们自己的个人资金混合是违法的。
市场行为描述了公司和生产者开展业务的方式。这是生产者的道德准则。生产者必须遵守某些既定程序，如果不遵守将导致处罚。一些市场行为规定包括但不限于以下内容：
利益冲突;
要求提供礼品或贷款作为完成业务的条件;和
提供机密信息。
生产者必须始终以专业的方式进行表演。职业精神意味着一个人从事需要高级培训，知识或技能的职业。专业意味着在所有情况下将公众利益置于自己的利益之上。任何偏差都可能导致罚款。
D.合同

合同是两个或多个法律强制执行的当事方之间的协议。由于保险交易的独特方面，必须修改合同的一般法律以适应保险的需要。
1.法律合同的要素

为了使保险合同具有法律约束力，它们必须具有4个基本要素：
协议 - 提供和接受;
考虑;
主管方;和
法律目的。
提供和接受

一方必须提出明确的要约，而另一方必须以其确切的条款接受此要约。在保险方面，申请人通常在提交申请时提出要约。当保险公司的承销商批准申请并签发保单时，将接受承保。
考虑

任何合同中的约束力都是考虑因素。考虑是每一方给予另一方的有价值的东西。被保险人的代价是支付保险费和申请中的陈述。保险公司的考虑是承诺在发生损失时支付。
主管方

合同当事人必须能够在法律上签订合同。一般来说，这要求双方都达到法定年龄（纽约州为14 1/2），精神上有能力理解合同，而不是受到毒品或酒精的影响。
法律目的

大号
合同的目的必须是合法的，而不是违反公共政策。例如，为了确保人寿保险政策的合法目的，它必须具有：可保利益和同意。没有法律目的的合同被视为无效，任何一方都不能强制执行。