Definition of Tied Agent?

[BallinaTipp]

Would anyone have an opinion(know for certain) with regard to the actual position following the Insuract Act 1989, IIA 1995, Insurance Act 2000 etc. with regard to the responsibilites of an Insurance Undertaking for a tied agent?

Is it still the case that an insurance undertaking is fully responsible for all the activities of a tied agent?

Would this be the case for an Assurance Company and a Bank or Building Society?

I would welcome your opinions?

 

[ClubMan]

I thought that this might clarify but it just confuses me even more!

[broken link removed]

Multi-Agency Intermediary includes Multi-Agency Intermediaries, Single-Agency Intermediaries and Tied Agency Intermediaries unless otherwise specified.​

Where an intermediary holds one appointment it must use the designation “Single Agency Intermediary”. An intermediary that is a tied agent must describe itself as a “Tied Agent”.​

 

[GSheehy]

This is my understanding. There are two types of Tied Agent.

If a tied agent is a sole trader, it is more than likely that he/she will be deemed an employee of that insurance company. The company will then have unconditional responsibility for the actions of that agent. All compliance and regulatory issues are handled by the insurance company.

The agent or insurance company can also decide that it may be more appropriate for the agent to form a limited company, as part of the terms of appointment. If this is the case then the limited company would have to seek authorisation from the regulator and ultimate responsibility lies with the agent.

The Terms of Appointment (sole trader/Ltd. co.) issued by the insurer should be reflected in the 'Terms of Business' given to any potential client of the agent.