ECONOMICS
INSURANCE
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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Brokerage business
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The law of agency
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Surplus lines or excess insurance
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The law of large numbers
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Detailed explanation-1: -In agency contracts, there exists a legal relationships between two people whereby one person acts on behalf of the other. The person acting on behalf of the other is called an agent, and the person from whom the agent derives authority to act is called the principal.
Detailed explanation-2: -agency. n. the relationship of a person (called the agent) who acts on behalf of another person, company, or government, known as the principal. “Agency” may arise when an employer (principal) and employee (agent) ask someone to make a delivery or name someone as an agent in a contract.
Detailed explanation-3: -It is a fiduciary and consensual relationship between two persons where one person acts on behalf of the other person and where the agent can form legal relationships on behalf of the principal. It may be a business or personal relationship.
Detailed explanation-4: -Artists’ agents. An artist’s agent handles the business side of an artist’s life. Sales agents. Distributors. Licensing agents.
Detailed explanation-5: -Buyer’s Agency; Seller’s Agency; Dual Agency.