An agent that transacts all of a principal's business of a particular kind or in a
particular place is a
Select one:
A. Broker.
B. Special agent.
C. Soliciting agent.
D. General agent.
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D. General agent.
An agent that transacts all of a principal's business of a particular kind or in
a particular place is a general agent.
,If a terminated agent provides what appears to be a valid auto insurance binder to an
insurance applicant who subsequently has an accident, and the applicant has no
knowledge of the agent's termination, it is likely that insurance coverage will be
Select one:
A. Denied due to the agent's contract termination.
B. Provided by the insurer due to the apparent authority of the producer to bind
coverage.
C. Denied because no valid policy can be issued because the agent is an illegal
representative of the insurer.
D. Provided under the state guaranty fund which supports agency termination
conflicts.
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B. Provided by the insurer due to the apparent authority of the producer to
bind coverage.
If a producer representing multiple insurers contracts with a customer and then fails
to designate the insurer providing coverage before a loss occurs, the legal issue is
Select one:
A. Whether the policy is binding on all potentially responsible insurers individually
and severally.
B. Whether the insured misrepresented information in the application.
C. The inception and expiration dates of the policy.
D. Which, if any, insurer is liable for the loss.
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, D. Which, if any, insurer is liable for the loss
The primary issue will be to determine which insurer should have been
providing the insurance coverage, if any. Courts look for reliable evidence
that the producer intended to bind a particular insurer to the contract.
Maria is an insurance agent who represents Three Hills Insurance. By agreement
between the two parties, Maria has the authority to bind up to $1 million in property
coverage on businesses that fall within specific territories and classes of business. She
has never bound coverage outside of the specific territories and classes of business.
However, Maria does occasionally bind coverage limits that are 5-10% above her
authority level. Which one of the following duties to the insurer has Maria breached?
Select one:
A. Duty to follow instructions
B. Duty to transmit information properly
C. Duty of loyalty and accounting
D. Duty to disclose risks
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A. Duty to follow instructions
If an insurer ratifies an agent's unauthorized actions with full knowledge of the facts,
then the insurer
Select one:
A. Accepts the benefits of those actions.
B. Creates a binding third party relationship with any injured party.
particular place is a
Select one:
A. Broker.
B. Special agent.
C. Soliciting agent.
D. General agent.
Give this one a try later!
D. General agent.
An agent that transacts all of a principal's business of a particular kind or in
a particular place is a general agent.
,If a terminated agent provides what appears to be a valid auto insurance binder to an
insurance applicant who subsequently has an accident, and the applicant has no
knowledge of the agent's termination, it is likely that insurance coverage will be
Select one:
A. Denied due to the agent's contract termination.
B. Provided by the insurer due to the apparent authority of the producer to bind
coverage.
C. Denied because no valid policy can be issued because the agent is an illegal
representative of the insurer.
D. Provided under the state guaranty fund which supports agency termination
conflicts.
Give this one a try later!
B. Provided by the insurer due to the apparent authority of the producer to
bind coverage.
If a producer representing multiple insurers contracts with a customer and then fails
to designate the insurer providing coverage before a loss occurs, the legal issue is
Select one:
A. Whether the policy is binding on all potentially responsible insurers individually
and severally.
B. Whether the insured misrepresented information in the application.
C. The inception and expiration dates of the policy.
D. Which, if any, insurer is liable for the loss.
Give this one a try later!
, D. Which, if any, insurer is liable for the loss
The primary issue will be to determine which insurer should have been
providing the insurance coverage, if any. Courts look for reliable evidence
that the producer intended to bind a particular insurer to the contract.
Maria is an insurance agent who represents Three Hills Insurance. By agreement
between the two parties, Maria has the authority to bind up to $1 million in property
coverage on businesses that fall within specific territories and classes of business. She
has never bound coverage outside of the specific territories and classes of business.
However, Maria does occasionally bind coverage limits that are 5-10% above her
authority level. Which one of the following duties to the insurer has Maria breached?
Select one:
A. Duty to follow instructions
B. Duty to transmit information properly
C. Duty of loyalty and accounting
D. Duty to disclose risks
Give this one a try later!
A. Duty to follow instructions
If an insurer ratifies an agent's unauthorized actions with full knowledge of the facts,
then the insurer
Select one:
A. Accepts the benefits of those actions.
B. Creates a binding third party relationship with any injured party.
