According to the law of agency:
- The producer represents (works for) the insurer—not the insured.
- The insurer is responsible for the actions of the producer.
- Any act of the producer is also an act of the insurer; for example, if the producer receives a payment from the insured, it is assumed the insurer has received it.
- Any knowledge of the producer is also knowledge of the insurer; for example, if the producer knows the insured has a pit bull, it is assumed that the insurer also knows it—and the insurer cannot later deny knowing it.
- Market conduct is the commitment of both insurers and producers to do the right thing even when no one is looking. Their moral obligations extend beyond their legal ones. Market conduct is a code of ethics for insurance professionals.