The company has the right to refuse business provided by suspended agents when it is presented, but once the business is accepted, the company waives the right to deny coverage on the basis of denial of acceptance.

Question

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Once a company accepts business from an agent, even if the agent is later found to be suspended, the company has effectively waived its right to deny coverage based on the initial acceptance of the business. This is because by accepting the business, the company has entered into a contract and must honor the terms of that contract unless there are other legal grounds for termination or denial of coverage.

The Company Has the Right to Refuse Business Provided by Suspended