What is meant by the term fiduciary?
A fiduciary is a person or organization that acts on behalf of another person or persons, putting their clients' interests ahead of their own, with a duty to preserve good faith and trust. Being a fiduciary thus requires being bound both legally and ethically to act in the other's best interests.
Which of the following best describes an agent’s responsibilities?
Which of the following best describes an agent's responsibilities? An agent has to act in the best interests of insureds, applicants, and insurers. In addition to the duties an agent owes to the insurer, the agent also must act only in the best interests of the applicant or insured.
What fiduciary responsibility means?
When someone has a fiduciary duty to someone else, the person with the duty must act in a way that will benefit someone else, usually financially. The person who has a fiduciary duty is called the fiduciary, and the person to whom the duty is owed is called the principal or the beneficiary.
What is fiduciary explain with example?
The most common fiduciary relationships involve legal or financial professionals who agree to act on behalf of their clients. For example, a lawyer and a client have a fiduciary relationship. So do a trustee and a beneficiary, a corporate board and its shareholders, and an agent acting for a principal.
What is another word for fiduciary?
Which is the best definition of a fiduciary relationship?
fiduciary. 1) n. from the Latin fiducia, meaning "trust," a person (or a business like a bank or stock brokerage) who has the power and obligation to act for another (often called the beneficiary) under circumstances which require total trust, good faith and honesty.
Which of the following best describes the concept of agency?
Which of the following best describes the concept of agency? An agent is a person who has been conferred authority by the principal to establish legal relations on his principal's behalf with a third party.
Who is included in the definition of an insurance agent?
The term insurance agent encompasses any person that sells, markets, distributes, or services an insurance company's covered products, including, but not limited to, a person who represents only one insurance company, a person who represents more than one insurance company, and a bank or broker-dealer in securities …
Which one of the following best describes a level premium payment plan?
Which one of the following best describes a "level premium" payment plan? The policyowner pays the same amount each time the premium is due for the full duration of the premium-paying period.
Which best describes an insurance company that invests its own funds?
Mutual insurance companies make investments in portfolios like a regular mutual fund, with any profits returned to members as dividends or a reduction in premiums. Federal law, rather than state law, determines whether an insurer can be classified as a mutual insurance company.