Question 3005 of 303 · California Life-Only Agent Exam
A client reasonably believes an agent can accept an application on the insurer's behalf because the insurer gave the agent a sign and supplies. This is
Exactly one answer is correct.
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Correct answer to question 3005
- A: apparent authority
Explanation
Apparent authority arises when the insurer's conduct leads third parties to believe the agent has authority. The insurer may be bound even if the agent lacked actual authority.
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