Which of the following is a typical duty of an insurance agent?

Which of the following is a typical duty of an insurance agent?

• A. Deposit premiums in a trust account and transmit to the insurer
• B. Adjust losses
• C. Determine policy exclusions
• D. Approve claim settlements

Answer: (A)

Handling premiums is a fundamental duty of an insurance agent. After a policy is sold, the agent collects the premium from the insured and must deposit it into a trust or designated premium account and promptly transmit the funds to the insurer. This safeguards funds, prevents misappropriation, and ensures the insurer receives payment to bind or maintain coverage. The other activities belong to different roles: adjusting losses is done by a claims adjuster, determining policy exclusions is part of underwriting or policy drafting, and approving claim settlements is a claims function, not an agent’s typical duty.

Handling premiums is a fundamental duty of an insurance agent. After a policy is sold, the agent collects the premium from the insured and must deposit it into a trust or designated premium account and promptly transmit the funds to the insurer. This safeguards funds, prevents misappropriation, and ensures the insurer receives payment to bind or maintain coverage. The other activities belong to different roles: adjusting losses is done by a claims adjuster, determining policy exclusions is part of underwriting or policy drafting, and approving claim settlements is a claims function, not an agent’s typical duty.