General Insurance
In the law of agency as it applies to insurance, who is the principal?
Answer and explanation
Answer: D. The insurer is the principal and the agent acts on its behalf, which is why knowledge given to an agent within the scope of authority is ordinarily treated as knowledge of the insurer. The applicant is the third party to the agency relationship, and the state regulates rather than participates in it.Source: PSI — New York DFS Insurance Candidate Information Bulletin — Outline, insurer as principal
More general insurance questions
- Which method of handling risk does buying life insurance represent?
- Which need is customarily met by a government insurer rather than a private one?
- Which policy feature is designed chiefly to limit adverse selection?
- Which set names the elements of a legal contract as the outline lists them?
- Which statement best explains why a life insurance policy is legally considered a conditional contract?
- Who owns a mutual insurance company?
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