An Insurance Company Suspends an Agent, but the Agent Retains

question 24

Multiple Choice

An insurance company suspends an agent, but the agent retains possession of blank policies.Which of the following is likely to happen if the former agent issues those policies?

• A)The company provides the suspension order of the agent in front of a judge and cancels those policies.
• B)The company waives the agent's authority and the existence of an agency relationship and cancels the policies.
• C)The premiums of these policyholders are paid back, and the policy cancelled by their consent.
• D)The court holds the authority to decide whether the policy stands or is cancelled.
• E)The company is estopped from denying the existence of an agency relationship and will be bound by the policy.

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Definitions:

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