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IC38 Chapter 4 Notes

CHAPTER – 4

REGULATORY ASPECTS OF INSURANCE AGENTS

Regulations of Insurance Agents :

  • Appointment of Insurance Agent regulations came into force with effect from 1st April 2016.
  • A letter of appointment issued by an insurer to any person to act as an insurance agent .
  • “Insurance Agent” means an individual appointed by an insurer for the purpose of soliciting or procuring insurance business including business relating to the continuance, renewal or revival of policies of insurance.
  • “Composite Insurance Agent” means an individual who is appointed as an insurance agent by two or more insurers subject to the condition that he/she shall not act as insurance agent for more than one life insurer, one general insurer, one health insurer and one each of the mono-line insurers.
  • “Centralised list of Agents” means a list of agents maintained by the Authority, which contains all details of agents appointed by all insurers
  • “Designated Official” means an officer authorised by the Insurer to make Appointment of an individual as an Insurance Agent
  • An applicant seeking appointment as an insurance agent of an Insurer shall submit an application in Form I-A to the Designated Official of the Insurer
  • The Designated Official shall communicate the reasons for refusal for appointment as agent to the applicant in writing, within 21 days of receipt of the application

Appointment of Composite Insurance Agent by the insurer:

  • An applicant seeking appointment as a „Composite Insurance Agent‟ shall make an application to the Designated Official of respective life, general, health insurer or monocline insurer .
  • Composite Agency Application Form I-B.

Insurance Agency Examination :

An applicant shall pass in the Insurance Agency Examination conducted by the Examination Body in the subjects of Life, General, or Health Insurance

Disqualification to act as an Insurance Agent: The conditions for disqualification shall be as stipulated under Section 42 (3) of the Act

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