Your Free Online Legal Dictionary • Featuring Black’s Law Dictionary, 2nd Ed.

AGE SETBACK

Assuming women live longer than men. This means they will pay more premiums and thusly a discount is given for this.

AGENCY BY ESTOPPEL

When an agent is appointed but not officially. AKA presumption of agency. Refer to partnership by estoppel.

AGENCY BY NECESSITY

When one party makes decisions for another. It is because the other party cannot make the decisions.

AGENCY CAPTIVE

A CAPTIVE, owned by one or more INSURANCE AGENTS, which is used to write insurance cover for a large number of third party clients. See also GROUP CAPTIVE, PROTECTED CELL COMPANY,PURE CAPTIVE,

AGENCY COST VIEW

A report describing the agency costs. The cost is usually incermental. If a client is in debt the cost is very low.

AGENCY COSTS

Direct and indirect costs arising from the separation of ownership (i.e., COMMON STOCK shareholders) and control (i.e., DIRECTORS and managers) that ultimately lead to a reduction in ENTERPRISE VALUE. Agency costs can

AGENCY PAYMENTS

Payments made between government agencies for services exchanged. They are not on the budget.

AGENCY PROBLEM

When an abuse of power is used to benefit the agent not the company.

AGENCY RISK

The loss that occurs when an agent abuses power to benefit themselves. AKA agency cost.

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