Page 60 - IC24 LEGAL ASPECTS OF LIFE ASSURANCE
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diligence, render proper accounts and is accountable for
profit / loss to principal.
Section 40A of the Insurance Act limits the expenditure that
insurance companies can make on paying commissions to
agents.
Section 41 prohibits giving or receiving any rebate either on
commission payable or on the premium shown in the policy.
An agency is terminated:
✓ by the principal revoking his authority
✓ by the agent renouncing the business of the agency
✓ by the business of the agency being completed
✓ by either the principal or agent dying or becoming of
unsound mind, or
✓ by the principal being adjudicated an insolvent under the
