Dave is an agent for easy pay insurance. easy pay insures only high-quality applicants. dave wanted to earn more commissions, so he sold some policies to applicants he knew were below-average risks. when these policyowners started filing claims, easy pay tried to deny the claims stating that dave had not acted appropriately. which general rule of agency makes easy pay responsible for the claims of the higher-than-average risk policyowners? there is no presumption of an agency relationship. agents should be compensated based on the quality of the business they generate. an agent must have authority to represent the principal. a principal is responsible for the acts of its agents who are acting within the scope of their authority.

Question

Business

Jaelyn

22 December, 23:37

Dave is an agent for easy pay insurance. easy pay insures only high-quality applicants. dave wanted to earn more commissions, so he sold some policies to applicants he knew were below-average risks. when these policyowners started filing claims, easy pay tried to deny the claims stating that dave had not acted appropriately. which general rule of agency makes easy pay responsible for the claims of the higher-than-average risk policyowners? there is no presumption of an agency relationship. agents should be compensated based on the quality of the business they generate. an agent must have authority to represent the principal. a principal is responsible for the acts of its agents who are acting within the scope of their authority.

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Precious · Answer 1

The correct answer is that a principal is responsible for the acts of its agents who are acting within the scope of their authority.

As an insurance agent, Dave was selling Insurance policies to customers that may not have met the criteria of Easy Pay Insurance. Easy Pay is still responsible for his acts because he was working within his scope of authority as an insurance agent with the company.