Page 79 - M1_Insurance Introduction Notes
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In the case of insurance companies, the
distribution system is a network of individuals and
organizations that are involved in making the
insurance products available to the customers.
They form a link between the insurance company
and the buyers of insurance products.
The various components of the distribution
channel in an insurance company are:
a. AGENTS
An insurance agent is an agent licensed under
section 42 of the Insurance Act, 1938. He/she
receives payment by way of commission for
procuring insurance business. He/she is also
responsible for business relating to the
continuance, renewal or revival of policies of
insurance. An agent could also be a corporate
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