Which of the following statements is (are)true regarding insurance agents and insurance brokers?
I.A property and liability insurance agent has the authority to bind the insurer for certain types of coverage.
II.A licensed broker who is not a licensed agent has the legal authority to bind an insurer.
A)I only
B)II only
C)both I and II
D)neither I nor II

Question

Quizplus · Accepted Answer

Statement I is true because a property and liability insurance agent is authorized to bind the insurer for certain types of coverage. However, statement II is not entirely true. A licensed broker who is not a licensed agent does not have the legal authority to bind an insurer on their own. They can only bind coverage for a client with the insurer's authorization or through a binding authority agreement with the insurer.

Which of the Following Statements Is (Are)true Regarding Insurance Agents