Chapter 13. Intermediaries

• Pages: 226-237

CHAPTER 13

INTERMEDIARIES

INTRODUCTION

The composite term ‘inter mediary’ embraces the functionaries agent, broker, sales represen-

tative, adjuster, insurance consultant or any such other person carrying on business connected

with insurance as may be prescribed.

1 So important is the role that intermediaries play that it is

di cult to envisage a circumstance in insurance without the involvement of some sort of inter-

mediary at some stage of the insurer/insured relationship. Indeed, Ward v New India Assurance

Co. (Trinidad and Tobago) Ltd 2 reveals (1) the importance of the inter mediary’s role in the conclu-

sion of insurance contracts, (2) imputation of knowledge to his principal and (3) the potential

for actions to give rise to estoppel and/or waiver, thereby precluding the insurer from rejecting

a claim, Unfortunately, despite the intermediary’s importance in the Caribbean, unlike the

position elsewhere there is no comprehensive statutory regulation of intermediaries, so that

a great deal of reliance must instead be placed on the common law and the general rules of

agency.

13.1 STATUTE

T he regulation of intermediaries in the Commonwealth Caribbean is via statute and the com-

mon law. Regional Insurance Acts play a marginal role in this regard, their application being

largely restricted to the formalities of registration and the qualifi cation of insurance person-

nel. It is important for regulatory purposes to fi rst ascertain exactly who is an intermediary.

A logical and convenient starting point is the defi nition section contained in the Insurance

Act.

3 Minor di erences in regulatory approach exist. This necessitates, in the context of the

regional operation of insurance business, regard to the specifi c Act in each territory in which

the insurance company operates. Accordingly, with respect to the defi nition of a broker, under

the Guyana Insurance Act,

4 a broker is defi ned as a person who as an individual contractor

brings together, with a view to the insurance of risks, persons seeking insurance and insurance

undertakings and carries out work preparing contracts of insurance, but does not include an

insurance agent. In Barbados and Jamaica, a broker is defi ned as ‘[any person] who in any

manner solicits, negotiates or procures insurance or the renewal or continuance thereof on

behalf of insurers or on behalf of agents or who arranges insurance business on behalf of

prospective policyholders.’

5 Di erences in approach are also discernible with respect to the

defi nition of agents. In Barbados and Jamaica, an ‘agent’ is defi ned as an individual, form or

body corporate appointed by an insurer and not being an employee of the insurer, to solicit

applications for insurance or negotiate insurance on behalf of the insurer and, or authorised to

do so by the insurer, to e ectuate and countersign insurance contracts.

6 In Guyana, an ‘agent’

1 Section 2, Jamaica Insurance Act No. 26 of 2001.

2 (2005) 70 WIR 48.

3 Section 2, Barbados Insurance Act No. 32 of 1996; Section 2, Guyana Insurance Act No. 20 of 1998; Sec-

tion 2, Jamaica Insurance Act No. 26 of 2001.

4 Insurance Act No. 20 of 1998.

5 Supra n. 2.

6 Section 2, Barbados Insurance Act No. 32 of 1996; Section 2, Jamaica Insurance Act No. 26 of 2001.