General Insurance
An insurer lets a former agent keep using its stationery and signs, and a client deals with him believing he still represents it. Which authority is in play?
Answer and explanation
Answer: C. Apparent authority arises where the principal's own conduct leads a third party reasonably to believe the agent is authorized, which is what leaving the insurer's materials in the former agent's hands does. Express authority ended with the contract, and implied authority exists only alongside express authority.Source: PSI — New York DFS Insurance Candidate Information Bulletin — Outline, apparent authority
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