Why is the power to bind life insurance contracts not given to agents?
A) Agents are not capable of evaluating the risks they deal with
B) This restriction minimizes fraud and misunderstanding
C) Because the agents represent the insurance buyers and not the insurance companies
D) All of the above

Question

Quizplus · Accepted Answer

Giving agents the power to bind life insurance contracts without oversight can lead to increased fraud and misunderstandings. It ensures that there is a system of checks and balances in place to protect both the insurance company and the buyer.

Why Is the Power to Bind Life Insurance Contracts Not