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CPCU 530 CH 7. AGENCY LAW QUESTIONS WITH CORRECT ANSWERS

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CPCU 530 CH 7. AGENCY LAW QUESTIONS WITH CORRECT ANSWERS

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The agent must not undertake any business venture that competes or interferes with
the principal's business. This agent duty to the principal is:


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Loyalty




Statement concerning a contract binding a principal to a 3rd party


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The contract also binds the 3rd party to the principal




An Agent can sue a 3rd party for breach of contract if both the:

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Agent and 3rd party have agreed the contract obligates the Agent




When an Agent did not disclose and insured's heart condition on an application for
health insurance, Which fiduciary duty is involved?


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Information




In contract liability cases, one of the questions to be answered in determining the
parties liabilities and rights include:


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What was the extent of the Agents authority?




Course of action a principal can take to prevent an agent from revealing trade secrets
obtained during the course of employment


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The Principal can sue for an injunction prohibiting such action.

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