AINS Chapter 4 | 79 Questions with 100% Correct Answers

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The authority that the principal specifically grants to the agent is contained in the agency contract. This authority is known as Select one: A. Apparent authority. B. Implied authority. C. Expre ... ss authority. D. Contractual authority. - ✔✔C In the legal relationship known as agency, which one of the following is the principal? Select one: A. Agent B. Insurer C. Insured D. Third party - ✔✔B The primary duty of a principal to its agent is to Select one: A. Pay the agent for services performed. B. Generate sales leads for the agent. C. Hire and train sales people. D. Be obedient. - ✔✔AFrom an insured's point of view, relative to the concept of agency, little distinction exists between the Select one: A. Insurance agent and the insurance department. B. Broker and the claimant. C. Insurer and the insurance department. D. Insurance agent and the insurer. - ✔✔D Northtown Agency has an agency contract with Withers Insurance Company for personal lines coverages only. Anita, one of Northtown's existing personal lines customers is starting a floral delivery business that will require commercial insurance. Horace, one of the agents, accepted Anita's application, bound coverage and said he would pass the paperwork on to Withers, as Withers had handled all her other needs. As soon as he remembered the agency contract with Withers, he planned to send the request to a different insurance company that could accept the new business. Before he could do this, Anita submitted a claim. The claim would be covered because the coverage is bound based on the concept of [Show More]

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