Authority, Delivery and Ongoing Service

Know whom the agent represents

An insurer appointment and agency agreement define important express authority. Implied authority concerns acts reasonably incidental to the authorized role. Apparent authority concerns what the principal's conduct reasonably represents to others.

These are not interchangeable. A client cannot grant an insurance agent the insurer's underwriting authority. An agent also cannot create broader authority simply by claiming to have it.

The law can affect an insurer's responsibility for agent acts. BC life section 90 in the Insurance Act prevents treating an intermediary as the insured's agent to that person's prejudice in specified contract questions. Legal responsibility must be assessed from law and facts rather than a salesperson's preferred label.

Delegated functions need actual authorization

Ordinary sales activity differs from an insurer-delegated administrative or underwriting function. BC's delegated-authority advisory recognizes that life and A&S intermediaries can perform delegated functions.

The agency must understand the insurer's expectations and obtain written clarification where necessary. A contractual duty inconsistent with regulatory requirements should not be accepted or carried out.

Delegation does not remove competence, disclosure, or fair-treatment duties. It is therefore wrong to state that no life agent can ever perform any underwriting-related function, and equally wrong to assume every licensed agent may bind every risk.

Delivery communicates the accepted product

At delivery, explain the actual amount, premium, exclusions, ratings, riders, values, review rights, and outstanding requirements. Compare the issued terms with what the client requested.

Suppose the insurer issued reduced coverage and an exclusion. Saying “your policy is approved” without explaining those changes prevents an informed decision. The client must understand what is actually offered and any required acceptance.

Verify current premium and effective-date status. The delivery discussion is not just an administrative signature exercise; it is a chance to resolve misunderstanding about protection.

Health changes and extra premiums

Obtain required delivery information and transmit material changes to the insurer. An agent should not suppress a hospitalization or new test result because the client wants coverage quickly.

If additional premium is required, identify the amount, reason, due date, and how it affects commencement. A client should not assume the original deposit automatically covers a rated offer.

A reduced offer can also require a new needs discussion. If the insurer will provide less than the amount recommended, explain the remaining gap and available lawful alternatives. Do not record the lower amount as if it had always been the client's assessed need.

Premium handling and authentic documents

Use authorized payment channels and receipts. Do not deposit client premium money into a personal account or use it temporarily for business expenses. Any permitted handling of client funds must follow trust and insurer requirements.

Never imitate a client's signature or alter an application without authentic approval through the proper process. A verbal statement that the agent may “take care of it” is not permission to fabricate the client's execution.

Where a representative signs, identify the capacity and authority openly. A genuine authorized representative signature differs from copying the absent person's signature.

Servicing and reviews

Service can include beneficiary and ownership changes, premium arrangements, conversion, claims assistance, and coverage reviews. Document requests and confirm completion rather than assume sending an email solved the matter.

A scheduled review should consider relevant life changes, including marriage, separation, birth, debt changes, employment, retirement, or health developments. The exact service undertaking and local obligations matter; there is no single national law requiring every contract to be reviewed on an identical annual date.

If the agent promises to monitor a deadline or submit a change, that undertaking should be performed competently. A missed conversion window or unsubmitted designation can create serious loss.

Consider an issued policy requiring acceptance of a higher premium. If the client refuses the revised offer, the agent cannot record acceptance to preserve a sale. Explain the status, obtain the client's authentic instructions and follow the insurer's process for the deposit and any temporary coverage. If the client accepts, document the accepted terms and confirm outstanding requirements. A successful underwriting decision and a completed contract are distinct events; careful delivery connects the offer, the client's decision and the actual effective protection.

Apply clear status communication

A useful communication distinguishes:

• Advice recommended and client decisions.
• Application submitted and underwriting pending.
• Counter-offer received and acceptance outstanding.
• Coverage confirmed with its effective date.
• Requested service completed or still unresolved.

For example, “the insurer received your request” does not mean “the insurer completed the change.” The client should know the difference and receive confirmation when available.

If a problem emerges, preserve records and escalate promptly. Authority should be used to provide accurate service, not to promise results beyond the mandate or hide incomplete implementation.