Market Conduct: Controlling and Minimizing Agent and Broker Risk

Summary

This practice note addresses an insurer's market conduct exposure from agents and brokers and its exposure to sales practice liability. Due diligence is needed in the corporate reporting structure and method of compensation as well as licensing and appointment compliance procedures for agents and brokers. There are important disclosures to make about the interrelationship between brokers, insurers, and insureds and compensation. Special discussion is given to sales practices in the senior marketplace, cyber security, and data privacy compliance.