Which of the Following Statements Best Defines a Partially Disclosed

question 42

Multiple Choice

Which of the following statements best defines a partially disclosed agency?

• A) It refers to an agency in which a contracting third party does not know of either the existence of the agency or the principal's identity.
• B) It refers to an agency in which a contracting third party knows that the agent is acting for a principal but does not know the identity of the principal.
• C) It refers to an agency in which a contracting third party does not know the identity of the principal.
• D) It refers to an agency in which a contracting third party knows that the agent is acting for a principal.

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Definitions:

Insurable Interest

A requirement indicating that a policyholder must stand to suffer a financial loss or certain types of loss from the damage or loss of the insured subject.

Unexpressed Restriction

An implicit limitation or condition that is not explicitly stated but affects the use or application of an agreement or law.

Coverage Limitations

are restrictions or caps in an insurance policy indicating the maximum amount the insurer will pay for covered losses or damages.

Insurance Contract

A legally binding agreement between an insurer and the insured, detailing the terms, coverage, premiums, and obligations of both parties.